Dow Retreats on Eve of Fed Rate Guidance
The Dow Jones Industrial Average fell from its record high and snapped seven-day winning streak on Tuesday ahead the Federal Reserve’s upcoming policy announcement.
The 30-stock index plummeted 127.51 points to 32,825.95
The S&P stepped back from Monday’s record levels, losing 6.23 points to 3,962.71
The NASDAQ Composite came off its highs of the afternoon, but held onto gains of 11.86 points to end the session at 13,471.57.
The central bank kicked off its two-day meeting on Tuesday, followed by a statement and briefing from Chairman Jerome Powell the following day.
Traders will get more guidance from the Fed on rates and inflation on Wednesday. The central bank kicks off its two-day meeting on Tuesday, followed by a statement and briefing from Chairman Jerome Powell the following day.
The market on Tuesday was supported by megacap tech stocks, with Apple prospering 1.3%, and Google-parent Alphabet rising 1.4% and Amazon adding 0.3%. Apple and Amazon have underperformed in recent months as investors have shifted from growth stocks to value plays, but some of the more mature tech stocks now appear less expensive, according to some strategists.
February retail sales fell by more than expected, down 3%, data released Tuesday showed, reflecting in part a month marked by severe weather across the United States. However, January’s retail sales figures were revised upward to a 7.6% jump from a 5.3% increase, so the markets largely ignored the number.
Prices for 10-Year Treasurys were lower, raising yields to 1.62% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
Oil prices skidded 74 cents to $64.65 U.S. a barrel.
Gold prices recovered $1.60 to $1,730.80.