Wed Sep 18 17:12:53 UTC 2024: ## Wall Street Holds its Breath as Fed Rate Decision Looms

**New York, NY** – The stock market closed on Tuesday with a mixed bag of results, hovering near flat as investors braced for the Federal Reserve’s crucial interest rate decision expected on Wednesday.

The S&P 500 index edged up slightly, finishing at 5,634.58, after reaching a record high earlier in the session. The Dow Jones Industrial Average, however, dipped by 15.9 points to close at 41,606.18, also following a record high earlier in the day. The Nasdaq Composite ended the day with a slight gain of 0.2 percent, settling at 17,628.06.

The market’s performance comes after a turbulent summer marked by concerns over the US economy’s health. Disappointing jobs and manufacturing data in August led to a significant sell-off, but equities managed to rebound as more positive data emerged, accompanied by expectations of a rate cut by the Federal Reserve.

All eyes are now on the Fed’s decision, which could have a significant impact on company earnings after a period of high inflation and steep borrowing costs. The central bank began aggressively raising interest rates in March 2022.

Recent retail sales data showed signs of consumer strength, with sales increasing slightly in August. While most investors anticipate a rate cut, the size of the reduction remains uncertain. The CME Group’s FedWatch Tool indicates a 63 percent chance of a 50 basis point cut, but a larger cut could raise concerns about the economy’s condition.

“A 50 basis point cut may further imply a downgrade of the Fed’s view on the labour market — that would be more of a concerning sign,” commented Adam Turnquist, chief technical strategist at LPL Financial. He added, “I think there’s going to be a pretty big deviation between what the market is expecting, and what the Fed is going to project.”

In other market news, Intel shares rose by 2.7 percent after the company announced plans to spin off its foundry business. The Biden administration awarded Intel up to $3 billion in funding through the CHIPS Act to support this initiative.

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