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11/06/24
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Stocks On Wall Street Lower Ahead of CPI Data, Fed Meeting
On Tuesday, U.S. stocks dropped as investors were cautious at the beginning of the Federal Reserve’s meeting and before the release of key inflation data later this week.
The NASDAQ Composite slipped 30 points, or 0.2%, the S&P 500 dropped 20 points, or 0.4%, lower and the Dow Jones Industrial Average fell 250 points, or 0.6%.
The Federal Reserve begins its latest two-day meeting on Tuesday, resulting in a degree of caution in the stock markets.
The U.S. central bank is generally expected to keep interest rates unchanged at a more than 2-decade high of between 5.25% and 5.5% on Wednesday, as several officials have suggested recently that they require more evidence that the pace of inflation is easing back down to the 2% target before starting to cut rates.
The focus will likely be on the press conference from Fed Chair Jerome Powell as well as the bank’s latest “dot plot”, which describes how officials expect borrowing costs to move in the months to come.
There will be no major economic data release on Tuesday, but on Wednesday, the reading of its U.S. consumer price index for May will also be released, a highly-anticipated measure of inflation in the world’s biggest economy.
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