Wall Street Mixed as Investors Await Fed Rate Clues, Data
Wall Street's main indexes were mixed on Wednesday, with the S&P 500 hovering near a record high, as investors awaited more indicators on the state of the economy and upcoming interest rate reductions.
The three main indexes were propped up for monthly gains after the Federal Reserve cut interest rates, raising expectations for a soft landing. However, a weak consumer sentiment report on Tuesday fanned some caution about the health of the labor market.
The yield on long-term Treasury bonds , ticked higher on worries that looser financial conditions could re-ignite inflation.
Odds of a 50 basis point cut by the central bank at its November meeting have ticked up to 57.4%, from a coin toss earlier in the week, as per the CME Group's FedWatch Tool.
At 11:42 a.m. the Dow Jones Industrial Average (.DJI), fell 202.11 points, or 0.48%, to 42,006.11, the S&P 500 (.SPX), lost 0.01 points, or was flat at 5,732.92 and the Nasdaq Composite (.IXIC), gained 47.87 points, or 0.26%, to 18,122.39.
Six out of the 11 S&P 500 sectors trended lower, led by energy stocks (.SPNY). Tech stocks (.SPLRCT), bucked the trend, lifted by Nvidia's (NVDA.O), 3% gain.
The blue-chip Dow slipped after hitting record highs, bogged down by a 4.8% drop in Amgen (AMGN.O), after the drugmaker reported mixed data on two drugs, fanning competition concerns.
The S&P 500 and the tech-heavy Nasdaq are up about 20% so far this year on rate cut expectations and optimism around artificial intelligence. However, the S&P 500 is trading at valuations high above longterm averages.
Source : Reuters
