US stocks close lower on mixed bag of economic data

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Investors mull economic reports that cement expectations of more aggressive tightening by the Federal Reserve

Raindrops on a sign for Wall Street outside the New York Stock Exchange in Manhattan, New York, the US. Picture: MIKE SEGAR/REUTERS

The benchmark S&P 500 closed a hair above 3,900, seen by many analysts as a key technical support level that has been tested several times over the past two weeks.“It’s been a difficult year and investors are wary,” said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. “Until something changes the tie’s going to go the runner and that’s been the bear.

“The question is what’s going to happen in November?” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “If the Fed really wants to handle it properly, it will be 50 bps drop in November, a 25 bps cut in December, and then they'll reassess.” None of the data appeared to change the calculus regarding Fed expectations. Financial markets have now fully priced in an interest-rate increase of at least 75 bps next Wednesday, with a one-in-five chance of a supersized, 100 bps hike, according to CME’s FedWatch tool.

 

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