S&P 500 and Nasdaq slip from their records ahead of key Fed meeting
U.S. stocks fell slightly on Tuesday with the S&P 500 and the Nasdaq Composite slipping from their respective records, as investors awaited the key Federal Reserve monetary policy meeting.
The S&P 500 dipped 0.2% to 4,246.59 after rising 0.1% to reach a new all-time high of 4,257.16 earlier in the session. The Dow Jones Industrial Average fell 94.42 points, or about 0.3%, to 34,299.33. The Nasdaq Composite, which hit a record closing high in the previous session, pulled back 0.7% to 14,072.86 as Apple, Alphabet, Amazon and Microsoft all registered losses.
Real estate and tech were the biggest laggards on Tuesday, while the energy sector provided the broader market with some support, rising 2.1%. Diamondback Energy jumped 5.1%, and Exxon Mobil and Occidental Petroleum climbed more than 3% each.
On the data front, the final demand index for producer prices advanced 6.6% for the 12 months ended in May, the largest increase since 12-month data were first calculated in November 2010.
On a monthly basis, the producer price index for final demand rose 0.8%, ahead of the Dow Jones estimate of 0.6%.
Meanwhile, May’s retail sales data fell 1.3%, compared to an expectation of a 0.7% decline per economists polled by Dow Jones.
The Fed’s two-day policy meeting started on Tuesday, and it’s a focal point for the markets this week. The central bank is not expected to take any action. However, commentary on interest rates, inflation and the economy could drive market moves.
Traders will listen closely for comments on inflation and the Fed’s eventual tapering plans.
Reference: CNBC
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