Dow Flat as S&P 500 and Nasdaq Rise Ahead of Fed Rate Hike
The U.S. stock market showed a mixed performance ahead of an expected Federal Reserve rate hike, with the Dow Jones Industrial Average remaining nearly flat while both the S&P 500 and Nasdaq Composite rose slightly. Energy stocks fell due to declining oil prices following increased energy inventories in the U.S., impacting major producers like Chevron and ExxonMobil. Meanwhile, AI infrastructure companies such as Nvidia and AMD saw gains after several days of losses. The Dow's flat performance was attributed largely to declines in International Business Machines (IBM) and American Express (AXP), which together erased nearly 95 points from the index despite IBM securing a $1 billion government contract. Investors are closely watching the Fed’s upcoming decision, with futures markets indicating over 90% odds of a quarter-point rate increase—marking the first hike since July 2023. The market is also paying attention to the updated Summary of Economic Projections and dot plot from the Federal Open Market Committee. These will include forecasts for 2029, offering insight into future monetary policy expectations.
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Topics: bond yields Dow Jones Industrial Average energy stocks Nasdaq Composite oil prices S&P 500