Dow Jones loses 200 points, investors struggle ahead of Fed decision: real-time updates

Stocks fell on Tuesday as Wall Street awaited the results of this week’s Federal Reserve policy meeting.

The Dow Jones Industrial Average lost 234 points or 0.7%. The S&P 500 fell 0.7%, while the Nasdaq Composite fell 0%.8th %.

Deere, often viewed as a barometer of future economic activity, fell more than 2% during the session. The decline came after Evercore ISI downgraded the company’s stock rating from “Inline” to “Outperform” due to lower agricultural production.

Tuesday marks the commencement of the central bank’s biennial two-day assembly. The Fed is not expected to raise interest rates when it announces its decision on Wednesday. Investors estimate there is a 99% chance the central bank will ignore an increase, according to CME Group’s FedWatch, a price gauge of federal funds. Traders are putting just a 29% chance of a hike in November.

Wednesday will see the Fed providing economic projections as well. Investors will watch for commentary around the path of inflation and the future of monetary policy.

Kevin Gordon, senior investment strategist at Charles Schwab, expressed confidence that we are approaching the conclusion of the upward interest rate trend rather than its inception. The significance lies in their perspective for the upcoming year and the potential transition in 2024.

Oil prices rose on Tuesday. The price increase helped energy companies in the S&P 500 index pare the session’s losses.

The leadership of the striking United Auto Workers union said more workers could be forced to walk off the job if no progress is made by Friday’s deadline. Stellantis rose nearly 2% in Tuesday’s session, while General Motors and Ford gained about 0.6% and 0.6%, respectively 3%.

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