Tue Sep 17 06:52:27 UTC 2024: ## Wall Street Awaits Fed’s First Rate Cut in Years, Stocks Remain Flat
**NEW YORK (AP)** – U.S. stock markets traded cautiously on Tuesday, with investors awaiting the Federal Reserve’s anticipated interest rate cut on Wednesday. This would be the first cut in over four years.
The S&P 500 saw a minor gain, rising by less than 0.1%, while the Dow Jones Industrial Average dipped slightly. The Nasdaq Composite edged up by 0.2%.
Intel’s 2.7% increase, driven by news of expanded partnerships and foundry business plans, provided a boost to the market. However, Philip Morris International’s stock fell by 2.2% following a $220 million loss announcement related to the sale of its subsidiary.
The calm trading environment marked a change from the volatility of recent weeks, where the S&P 500 briefly fell nearly 10% below its all-time high amid concerns about a slowing economy and recession fears.
Investors are eagerly anticipating the Fed’s decision on Wednesday, with widespread expectations of a rate cut. The current federal funds rate has been at 5.25% to 5.50% for over a year. Lower rates are anticipated to ease borrowing costs and stimulate economic growth.
The Fed’s decision is a delicate balance, as lowering rates could rekindle inflation while delaying action could further strain the economy. The market is leaning towards a half-percentage-point cut, but a traditional quarter-point cut remains a possibility.
Economic data released on Tuesday offered mixed signals. Retail sales exceeded expectations, indicating consumer spending strength. However, adjusted sales figures showed a weaker trend. Industrial production in August also exceeded forecasts.
While the data did not significantly impact expectations for the Fed’s decision, analysts remain cautious. The Fed’s rate move is expected to have a substantial impact on the economy and financial markets.
Meanwhile, bond yields rose, and the Japanese Nikkei 225 fell by 1% as the yen strengthened against the dollar. European markets saw modest gains, while Asian markets were closed.
First Piper 