US stocks close lower ahead of Fed rate decision

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NEW YORK: Wall Street lost ground on Tuesday (Sept 19), with risk-off sentiment weighing as the US Federal Reserve (Fed) convened for its much-anticip...

The Marriner S. Eccles Federal Reserve building is covered in protective plastic during renovations in Washington, DC, on Tuesday. Financial markets have priced in a 99% probability that the US central bank will leave its key Fed funds target rate at 5.25%-5.00% on Wednesday. – AFPpicWall Street lost ground on Tuesday , with risk-off sentiment weighing as the US Federal Reserve convened for its much-anticipated two-day monetary policy meeting.

The Dow Jones Industrial Average fell 106.57 points, or 0.31%, to 34,517.73, the S&P 500 lost 9.58 points, or 0.22%, to 4,443.95 and the Nasdaq Composite dropped 32.05 points, or 0.23%, to 13,678.19. “Broad inflation readings have shown marked progress over the last year,” Northey added. “But the last mile of inflation is likely going to be more challenging, bringing it back toward the Federal Reserve’s target of 2%.”

“What’s being priced into the market is a pause but increased risk that rates will stay higher for longer,” said Michael Green, chief strategist at Simplify Asset Management in Philadelphia. “If announced that they are removing rate cuts in 2024 by raising the dot plot, it would generally be seen as a very hawkish pause.”

 

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