U.S. stocks edged lower on Tuesday as investors awaited the Federal Reserve policy meeting.

Source: BlockMedia Original Title: [New York Stock Market Close] Burden from Rising Treasury Yields… S&P 500 and Dow All Close Lower Original Link:

Market Trends

The New York stock market showed a cautious atmosphere ahead of the Federal Reserve’s final monetary policy meeting of the year this week, with major indices closing slightly lower.

On the 8th Eastern Time, the S&P 500 index fell by 23.89 points (0.35%) to close at 6,846.51 points. The Dow Jones Industrial Average dropped by 215.67 points (0.45%) to 47,739.32 points. The tech-heavy Nasdaq Composite Index fell by 32.22 points (0.14%) to 23,545.90 points.

Market Focus

The main factor weighing on investor sentiment was the rise in the U.S. 10-year Treasury yield. Although the market expects a drop in the benchmark interest rate, long-term yields have recently started to rise again. This reflects concerns about the possibility of inflation spreading again next year and the potential for further policy actions by the Federal Reserve.

The market widely expects the Fed to lower its benchmark rate by 0.25 percentage points at this week’s meeting. According to CME’s FedWatch data, as of the day, the probability of a rate cut reflected by the market was around 90%, a significant increase from 67% a month ago.

Market Optimism

This optimism has also been reflected in recent stock market performance. The S&P 500 and Nasdaq both rose for four consecutive trading days last week, marking two straight weeks of gains. The Dow Jones also rose in three out of five trading sessions last week. In particular, the Personal Consumption Expenditures (PCE) price index for September, released before the Fed meeting, came in lower than expected, strengthening expectations for easing inflation.

Stephen Collano, Chief Investment Officer at Integrated Partners, said in an interview with a major financial media outlet, “Market movements in the past one to two weeks have already largely priced in a 25 basis point cut,” warning, “If there is no cut at this week’s meeting, the market could fall by 2-3% in the short term.” He added, “Fed Chair Jerome Powell may emphasize a data-dependent approach to future rate decisions.”

Individual Stock Performance

Technology stocks held up relatively well during the session. A chip manufacturer rose 2% after reports it may become a partner in a major tech company’s in-house chip development. A gene therapy company soared 29% after being acquired by a major tech company in a $11 billion deal. Oracle also rose about 1% on strong earnings expectations.

Individual stock movements also influenced the market. Berkshire Hathaway underwent structural adjustments and was seen as accelerating organizational restructuring before top leader Warren Buffett’s retirement. An investment bank rose after another major investment bank recently upgraded its investment rating. In contrast, a gene therapy company and a life sciences company both saw their stock prices double due to positive news related to obesity treatment drugs, leading gains in the biotech sector.

Other Data

A total of 22 stocks in the S&P 500 hit 52-week highs. Electronic Arts, Ross Stores, Goldman Sachs, and a chip manufacturer reached all-time highs, while eight stocks including General Mills, Maggi, and Alexandria Real Estate hit 52-week lows, indicating a mixed market performance.