Nasdaq Closes Lower as Investors Remain Cautious Ahead of Fed Decision
US stocks closed lower on Tuesday amid broad-based selling pressure driven by investor caution before the Federal Reserve’s upcoming monetary policy decision. The Nasdaq Composite fell 0.8%, while both the S&P 500 and Dow Jones Industrial Average also declined, with over 400 companies in the S&P 500 ending lower. Market participants are closely watching for signals on future rate hikes as inflation concerns persist. Rising US Treasury yields, which have reached a 19-year high above 5%, added pressure to equities by increasing borrowing costs and reducing corporate valuations. Analysts noted that surging energy prices and expectations of further interest rate increases are contributing to the risk-off sentiment in markets ahead of Wednesday’s Fed announcement. In addition to macroeconomic concerns, several smaller-cap companies reported operational updates or financial developments, including Millennial Potash Corp hosting US Embassy officials at its project site and 374Water completing a PFAS cleanup campaign. However, these events did not significantly impact broader market trends.
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Topics: Dow Jones Industrial Average Federal Reserve Nasdaq Composite S&P 500