US stocks fell Tuesday as investors awaited the Fed’s policy decision. Dow Jones, S&P 500, and Nasdaq Composite declined. 10-year Treasury yield hit 1…
1/5US Markets | US stocks came under pressure on Tuesday, with investors turning cautious ahead of the Federal Reserve’s upcoming policy decision. A sharp rise in Treasury yields to multiyear highs added to the pressure on equities. The Dow Jones Industrial Average (DJIA) fell 501 points, or 1%, while the S&P 500 declined about 0.5%. The Nasdaq Composite slipped 0.6%.
2/5US 10-Year Treasury Yields | The benchmark 10-year Treasury yield climbed to its highest levels in 19 years on Tuesday. The 10-year yield was last up more than 3 basis points to around 5%. Earlier in the session, it scaled to 5.041%, the highest since July 2007. One basis point equals 0.01 percentage point, and yields and prices move in opposite directions. The yield on the longer-dated 30-year Treasury bond, more sensitive to geopolitical risks, rose 4 basis points to 5.368%. The yield had hit a high of 5.401% — also its highest level since June 2007.
3/5Crude oil | Oil swung as traders assessed risks for supplies from West Asia and Russia. Brent traded near $106 a barrel in a choppy session, as prices have been highly sensitive to headlines on the status of the two wars. While a critical Saudi Arabian pipeline remains offline, futures eased from earlier highs on expectations that Russia and Ukraine may consider halting strikes on energy assets, while Oman’s state news reported talks with the US on de-escalation in West Asia.
4/5US Fed Meeting | The US Federal Reserve’s two-day policy meeting begins on Tuesday with markets closely watching the central bank’s interest-rate decision and Chair Kevin Warsh’s comments on the outlook for monetary policy. The Federal Open Market Committee (FOMC) will announce its rate decision on Wednesday, September 16, at 2:00 pm ET, or 11:30 pm IST. Warsh’s press conference will follow at 2:30 pm ET, or midnight IST, according to the Federal Reserve’s official schedule.
5/5US Economic Data| due on Wednesday will include August retail sales and import prices, with markets also tracking July manufacturing and trade inventories. The September NAHB Housing Market Index is expected to provide further cues on the housing sector. The key event will be the Federal Reserve’s interest rate decision at 2 pm, alongside its economic projections. The current rate stands at 3.8%, with investors watching the policy outlook for signals on the path of future rate cuts.
