US: Stocks edge down from records ahead of Fed decision

[NEW YORK] Wall Street stocks edged down from record highs on Tuesday following solid US retail sales data as markets hold their breath ahead of a Federal Reserve rate decision.

The US central bank is overwhelmingly expected to cut interest rates on Wednesday for the first time in 2025, but markets are unsure what the Fed will signal about the likelihood of further cuts.

“It’s just kind of a wait-and-see move in front of the (Fed) decision so not a lot of conviction behind today’s trade,” said Briefing.com analyst Patrick O’Hare.

The broad-based S&P 500 slipped 0.1 per cent to 6,606.76, retreating slightly from Monday’s record close.

The tech-rich Nasdaq Composite Index also slid from a record, losing 0.1 per cent at 22,333.96, while the Dow Jones Industrial Average declined 0.2 per cent to 45,787.59.

Analysts see the recent string of US equity market records as the result of hopes that the US central bank will follow Wednesday’s interest rate cut with additional cuts in the months ahead.

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US retail sales jumped by 0.6 per cent on a month-on-month basis in August, holding steady from the prior month’s level and topping analyst expectations.

Among individual companies, Oracle climbed 1.5 per cent as the United States and China progressed towards a final accord on TikTok that reportedly maintains the US software company’s cloud deal with the platform. AFP