Investors brace for a rollercoaster ride as US stocks plummet in anticipation of the Federal Reserve’s highly anticipated decision, making every tick of the clock in the countdown more nerve-wracking than ever.
US stocks slipped on Tuesday as Treasury yields fell and investors braced for the Federal Reserve’s upcoming policy decision. The S&P 500 traded flat at the opening bell after Monday’s gain, while the Dow Jones Industrial Average fell around 0.2% and the Nasdaq Composite fell nearly 0.3%. Bonds rallied after the US Treasury cut its estimate of how much the government would need to borrow in the fourth quarter, easing some pressure on stocks. Fed policymakers have hinted that the recent surge in Treasury yields could be a factor in their decision making. Investors are highly focused on whether the central bank will hold interest rates steady or hike at their meeting starting Tuesday. In addition to the Fed decision, investors are also watching the US Treasury’s update on bond supply for next quarter, as it could impact yields and stocks. Strong earnings reports have not yet lifted the stock market this season, with mixed results from companies like Pfizer and Caterpillar.