Stock Market Today: Dow Slips, S&P 500 And Nasdaq Waver With Fed Rate Cut Seen As Done Deal

Economic

Stocks

Summary:

US stocks were mixed on Friday as Wall Street took stock of the US economy from a lofty, record-setting perch ahead of the Federal Reserve's highly anticipated decision on interest rates next week.

The Dow Jones Industrial Average fell 0.4%, while the S&P 500 slipped below the flat line. Meanwhile, the tech-heavy Nasdaq Composite climbed around 0.3% as Tesla stock was set for a seven-month high. All three major indexes rallied to records on Thursday, with the Dow closing above 46,000 for the first time.

Investors have taken in several weeks' worth of economic data to gain clues on the Fed's next move. Over the last week, jobs data has shown clear signals of labor market weakness, with just over 20,000 jobs added last month and weekly initial jobless claims surging to a near four-year high.

Meanwhile, inflation remains stubborn, with consumer prices rising last month amid more signs that President Trump's tariffs are filtering their way into the economy.

The University of Michigan's consumer sentiment survey released Friday showed consumer sentiment slipped more than expected in September, while long-run inflation expectations jumped to 3.9%, as Americans worried over the effects of tariffs.

But investors are betting inflation is tame enough for the Fed to cut next week — and then some.

Traders are pricing in a more than 90% chance of a quarter-point cut when the Fed holds its September meeting, according to CME Group. Beyond that, around 75% are betting the central bank will cut the equivalent of three times before the end of the year.

The lead-up to the Fed's September meeting in the next few days will likely be quieter. For now, the three major stock indexes are all headed for weekly gains of over 1%. The Dow was on track for its first win in three weeks after crossing 46,000 for the first time, while the S&P 500 and Nasdaq Composite are set for their best showing since early August.

Source: Kitco

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Stock Market Today: Dow Slips, S&P 500 And Nasdaq Waver With Fed Rate Cut Seen As Done Deal

Source: Kitco

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