Wall Street dips ahead of Fed decision
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The futures are trading flat on Tuesday after we opened the week on the downside, with all major indices finishing the day lower. With the Federal Reserve meeting this week, investors are playing a wait-and-see game before bidding stocks higher to ensure there will indeed be a 25-basis-point cut.
The bond market’s reaction to the Federal Reserve’s interest-rate cuts has been highly unusual. By some measures, a disconnect like this, with Treasury yields climbing as the central bank lowers rates,
U.S. stocks are pulling away from their record heights. The S&P 500 slipped 0.3% Monday, though it remains close to its all-time high set in October.
The dollar was steady as investors anticipated a likely Fed rate cut on Wednesday that could be accompanied by caution about future rate reductions.