US stocks end streak of gains as Fed minutes indicate a restrictive policy outlook
Aaron Schwartz/Xinhua via Getty Images
- US stocks fell on Tuesday with the S&P 500 snapping a five-session winning streak.
- Minutes from the Fed's last meeting indicated restrictive policy remains on the table.
- Investors also looked to Nvidia to release its earnings after the market close.
US stocks fell on Tuesday with the S&P 500 snapping a five-session winning streak as the latest Fed minutes hinted at a hawkish-leaning central bank.
The report dampened hopes for an imminent Fed pivot to rate cuts. Still, no further rate hikes are expected, and an overwhelming majority continue to expect rates to remain at the current 5.25%-5.50% range.
"Markets should expect Powell and other committee members to remain hawkish in tone, but that does not necessarily imply the Fed will hike further," LPL Financial's Jeffrey Roach said, adding, "The Fed will keep talking tough on inflation as they patiently wait for the full effects of previous rate hikes."
After Tuesday's closing bell, investors will also be watching for Nvidia's earnings release. One of this year's blowout tech stocks, the firm is facing high market expectations for a surge in profits and sales.
Here's where US indexes stood at the 4:00 p.m. ET closing bell on Tuesday:
- S&P 500: 4,538.19, down 0.20%
- Dow Jones Industrial Average: 35,088.29, down 0.18% (62.75 points)
- Nasdaq Composite: 14,199.98, down 0.59%
Here's what else happened today:
- Binance will pay a $4.3 billion fine as CEO Changpeng Zhao pleads guilty to charges and will step down.
- A new ETF offers investors a way to cash in on the Ozempic weight-loss craze.
- Moscow's high interest rates helped the Russian ruble become the world's top-performing currency since early October.
- One indicator shows that the S&P rally could keep up into year-end.
- Rising demand for nuclear power propelled uranium prices to a 15-year high.
- Treasury bonds erased 2023 losses after a historic collapse amid changing Fed sentiment.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil inched up 0.03% to $77.87 per barrel. Brent crude, oil's international benchmark, rose 0.23% to $82.50.
- Gold stayed essentially flat at $1,999.55 per ounce.
- The yield on the 10-year Treasury shed 1 basis point to 4.412%.
- Bitcoin slid 1.2% to $37,018.