Stocks were mixed Wednesday as traders prepared for a much-anticipated monetary policy decision and an even more important policy outlook from the Federal Reserve.
The Dow Jones Industrials roared ahead 313.43 points to 46,071.33.
The S&P 500 retreated 7.96 points to 6,598.80.
The tech-heavy NASDAQ index plunged 119.33 points to 22,214.63.
Nvidia shares dropped about 3% after The Financial Times reported, citing sources, that China has banned tech companies in the country from buying Nvidia’s chips. High-flying tech stocks Palantir, Google parent Alphabet, and Amazon also posted losses.
Big-box retailer Walmart gained about 2%, lifting the 30-stock Dow, on expectations that the Fed’s decision will usher in a series of lower interest rates that could give consumers some relief.
Traders almost universally expect the Federal Reserve will lower interest rates on Wednesday, a move that could boost the U.S. economy amid signs the labor market is slowing even as inflation stays stubbornly above the central bank’s 2% target.
Policymakers will also give more insight into their outlook for rates over the next year or so in the closely-watched “dot plot” grid that accompanies their quarterly Summary of Economic Projections.
Investors will also watch for any policy dissents from Fed policymakers after two such disagreements at the last meeting in July.
Traders have priced in a 96% chance that the Fed will cut rates by 25 basis points, or a quarter percentage point, and just 4% odds that the market will get a half-point reduction Wednesday
Prices for 10-year Treasury lost ground by noon, inching yields up to 4.04% from Tuesday’s 4.03%. Treasury prices and yields move in opposite directions.
Oil prices fell 17 cents to $64.35 U.S. a barrel.
Gold prices dipped $7.30 to $3,717.80 U.S. an ounce.
