Stock market varies prior to Federal Reserve's interest rate announcement; Nvidia experiences drop
Wall Street is experiencing a mixed trading day as the Federal Reserve's upcoming rate cut decision looms, with some sectors showing strength while others face challenges. The Dow Jones Industrial Average is up 0.54%, buoyed by a rise in financial stocks such as American Express and Goldman Sachs. On the NYSE, advancing issues outnumbered decliners by a 3.09-to-1 ratio. The Dow Jones is currently at 46,009.10. The S&P 500, however, is muted ahead of the widely expected interest-rate cut from the U.S. Federal Reserve later in the day. The benchmark index is slightly down, with the S&P 500 currently at 6,602.07. The S&P 500 consumer discretionary sector has seen a 0.6% fall due to the decline in Tesla. The tech-heavy Nasdaq is down 0.33% due to the S&P 500 technology sector's decline. The S&P 500 technology sector is down 0.7% due to Nvidia's fall, which came as a result of reports that China's internet regulator had instructed the country's biggest tech companies to stop buying all of Nvidia's chips. Contrastingly, the consumer discretionary sector's woes were offset by gains in other sectors. Workday gained 9%, topping the benchmark index, after activist investor Elliott Management built a stake of more than $2 billion in the human resources software provider. Meanwhile, the resumption of Fed rate cuts could potentially add to the rally in Wall Street, as traders are expecting a rate cut totaling about 68 bps by the end of the year. The central bank is expected to reduce borrowing costs by at least 25 basis points at 2 p.m. ET. Markets will closely watch Chair Jerome Powell's speech and the "dot plot" projections to gauge the monetary policy outlook ahead. Concerns about the central bank's independence have eased slightly, with the swearing in of economic adviser Stephen Miran as a Fed Governor and the rejection of U.S. President Donald Trump's bid to sack Governor Lisa Cook. Elsewhere, Lyft jumped 14% due to the news that Alphabet's Waymo would launch autonomous cab rides in Nashville next year in collaboration with the ride-hailing firm. However, no new lows were recorded for the S&P 500, and the Nasdaq Composite recorded 18 new lows. The search results do not provide information about who will hold a lecture on Friday, October 22, nor detail the Federal Reserve's monetary policy outlook as represented by the "Dot Plot." On the Nasdaq, advancing issues outnumbered decliners by a 1.83-to-1 ratio. In a positive note, the S&P 500 posted 12 new 52-week highs, while the Nasdaq Composite recorded 56 new highs. September, historically a bad month for U.S. equities, has seen the three main indexes gain so far. However, the Fed meeting may test the recent rally in Wall Street, supported by rate-cut expectations and AI-stock-linked trading. The resumption of rate cuts could provide a boost, but the tech sector's challenges may continue to weigh on the market.
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