FX.co ★ S&P 500, Nasdaq Edge Lower

U.S. stocks experienced a downturn on Tuesday as investors opted to secure gains and adopt a more cautious stance ahead of the Federal Reserve’s much-anticipated policy announcement. The S&P 500 dipped by 0.1% after reaching a new high earlier in the day. Simultaneously, the Nasdaq remained nearly unchanged, and the Dow Jones Industrial Average declined by over 100 points. Major technology companies such as Nvidia, Microsoft, Alphabet, and Palantir saw declines as well, contributing to broader market pressures along with financial and utility sectors. Market participants largely anticipate the Fed will implement a 25 basis point rate cut on Wednesday, marking its first rate reduction since December. All eyes are on Chair Powell for insights on subsequent Federal Reserve actions. On the economic front, robust retail sales figures for August indicated strong consumer spending, even amid persistent inflation and a weakening labor market. Additionally, investors monitored U.S.-China relations, as progress in trade discussions and a new TikTok framework bolstered market sentiment and supported Oracle’s share prices.