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US Market ends softer ahead of Fed rate decision

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Capital Market
Last Updated : Oct 30 2019 | 11:53 AM IST
The US stock market ended a lackluster session lower on Tuesday, 29 October 2019, snapping a four-session win streak, as investors elected to book recent profit amid concerns over trade deal with China and ahead of the U.S. Federal Reserve's interest rate decision set to be announced on Wednesday. At closing bell, the Dow Jones Industrial Average declined 19.30 points, or 0.07%, to 27,071.42 and the Nasdaq Composite shed 49.13 points, or 0.59%, to 8,276.85, meanwhile the S&P 500 dropped 2.53 points, or 0.08%, to 3,036.89.

Hopes of a U.S.-China trade deal and expectations of another interest rate cut by the Federal Reserve when it concludes its two-day meeting on Wednesday has pushed stocks higher the past several sessions, sending the S&P to its second straight record intraday high. However, indexes pulled back after a U.S. administration official told that Washington and Beijing are continuing to work on an interim trade agreement, but it may not be completed in time for the leaders of the two countries to sign in Chile next month.

The U.S. central bank is largely expected to lower interest rates by 25 basis points. That would be the third time this year the Fed cuts rates. However, investors will also look for clues about the Fed's policy decisions in the future.

ECONOMIC NEWS: US NAR Pending Home Sales Increase Significantly In September--US pending home sales surged up by 1.5% 108.7 in September after spiking by 1.4% to a revised 107.1 August, a report released by the National Association of Realtors on Tuesday showed. With the bigger than expected monthly increase, pending home sales in September were up by 3.9% compared to the same month a year ago. A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

US Consumer Confidence Slips In October-- US consumer confidence edged lower in the month of October to 125.9 from an upwardly revised 126.3 in September, according to a report released by the Conference Board on Tuesday. The unexpected decrease in consumer confidence came as consumers were less optimistic about the short-term outlook, with the expectations index sliding to 94.9 in October from 96.8 in September.

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First Published: Oct 30 2019 | 11:33 AM IST

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