The Dow fell 0.38% to 47,560.29, the S&P 500 eased 0.09% to 6,840.51, and the Nasdaq gained 0.13% to 23,576.49. Investors maintained a cautious stance, with the CME FedWatch Tool showing an 89.6% probability of a 25-basis-point cut.
How Are Global Central Banks Setting the Tone?
The Federal Reserve is widely expected to cut rates on Wednesday, though policymakers remain divided. White House economic adviser Kevin Hassett, a top contender for Fed chair, reiterated support for continued easing. That raised new questions about medium-term policy direction and how the Fed may balance growth concerns with inflation risks.
The Reserve Bank of Australia held rates steady but signaled that policy could tighten if inflation remains sticky, prompting the Australian dollar to firm to $0.6639. The Bank of Canada and Swiss National Bank are also expected to keep rates unchanged later this week.
What’s Driving Market Moves Across Sectors?
Sector performance was mixed, with Energy up 0.69% to lead gains as U.S. crude settled at $58.25 and Brent at $61.94. Technology added 0.17%, while Communication Services and Consumer Discretionary posted small advances. Defensive groups lagged, with Health Care down 0.98% and Industrials off 0.73%. Real Estate slipped 0.61% as yields ticked higher, with the 10-year Treasury rising to 4.182%.