Caution Prevailed On Wall Street Ahead of Fed Decisions and Comments

Barry Adams
11 Jun, 2024
New York City

Stocks were in a holding pattern in early trading on Tuesday as investors awaited rate decisions and consumer price inflation data on Wednesday. 

The S&P 500 index and the Nasdaq Composite lacked direction, and investors looked forward to the release of the Fed's monetary policy decision on Wednesday. 

The Federal Reserve is widely anticipated to hold the Fed Funds rate range between 5.25% and 5.50% after the two-day policy meeting that starts today. 

Investors are hoping that in the subsequent press conference, Fed Chairman Jerome Powell's comments and answers may provide deeper insights into future rate paths and possible rate cut timing. 

Investors have lowered rate cut expectations to only one cut at the end of the September meeting, from the expectations of four rate cuts at the start of the year. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.5% to 5,333.94, and the Nasdaq Composite fell 0.2% to 17,156.27.

The yield on 2-year Treasury notes edged lower to 4.85%, 10-year Treasury notes decreased to 4.44%, and 30-year Treasury bonds edged higher to 4.58%.

WTI crude oil increased $0.14 to $77.84 a barrel, and natural gas prices rose 15 cents to $3.05 a thermal unit.

Gold increased by $5.90 to $2,315.52 an ounce, and silver was down 35 cents to $29.35. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.30.

 

U.S. Stock Movers

General Motors jumped 1.4% to $48.34 after the company's board authorized a $6 billion stock repurchase plan. 

Eli Lilly jumped 2.4% to $887.0 after a panel of FDA advisors recommended the approval of the company's drug to treat Alzheimer, donanemab. 

Oracle Corp. declined 1.2% to $124.12 ahead of the software and database developer's quarterly results after the close of regular trading. 

DXC Technology jumped 2.3% to $18.88 on a report that Apollo Global and Kyndryl Holdings are nearing a bid between $22 and $25 a share for the company. 

The news was first reported by Reuters and could not be independently verified. 

Cognizant traded down 1% to $66.25, and the company agreed to acquire Cincinnati-based Belcan for $1.3 billion in cash and stock.