Wall Street close: US benchmarks bleed-out as investors look to key risks ahead
- The S&P 500 lost around 3 points, 0.1%, closing near 3,133.
- The Nasdaq dropped about 5 points, less than 0.1%, closing near 8,616.
- The DJIA, ended around 27 points, 0.1%, lower, near 27,883.
US benchmarks closed lower on Tuesday as investors lacked an impetus to keep the fire burning while there are bigger fish to fry later this week. There were concerns that there is still no substance to positive trade-talk, yet we are just a handful of day's away to when additional tariffs are due to kick in.
Subsequently, the Dow Jones Industrial Average, or DJIA, ended around 27 points, 0.1%, lower, near 27,883, while the S&P 500 lost around 3 points, 0.1%, closing near 3,133. The Nasdaq dropped about 5 points, less than 0.1%, closing near 8,616. In corporate news, stocks in the pet supply retailer Chewy Inc. were about 6% higher Tuesday on the prior day's positive earnings report.
Eyes on FOMC
Meanwhile, eyes will now turn to the Federal Reserve interest rate decision. Rates are expected to remain steady at 1.50-1.75% and the US dollar can likely continue to perform should the focus be on an improved economic backdrop on home soil. "We don't anticipate any dissents next week for the first time since May. Statement and dot-plot shifts are well anticipated," analysts at TD Securities argued.
"For the markets and the US dollar the key to this FOMC lies in the Projection Materials. Will the governors mark down their fed funds estimate for next year to take account of the current 1.75% rate or will they see a brighter future and raise their GDP and rate projections for 2020. This rather straightforward economic analysis will either propel or retard the dollar for the next several weeks - "
Joseph Trevisani, Senior Analyst at FXStreet explained.
DJIA levels
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
