US Stocks Open Lower Ahead Of Fed Decision; Dow Hits Record, Apple Declines
The Dow Jones Industrial Average hit an all time high of 41,733.97 after soaring 0.8% intraday.
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US stocks opened lower on Monday ahead of the Federal Reserve policy meeting, while Apple Inc. declined nearly 4% after analysts projected softer demand for its new iPhone 16 Pro models than the prior year.
The S&P 500 opened 0.2% lower at 5,615.21, while the tech-heavy Nasdaq Composite started 0.6% down at 17,573.7.
The Dow Jones Industrial Average hit an all time high of 41,733.97 after soaring 0.8% intraday.
Eight of of 11 S&P 500 sectors gained, although rate-sensitive tech stocks declined 1.4%, while banks rose 0.9%.
The Fed is scheduled to meet on Tuesday and Wednesday, with expectations high for its first interest rate cut since it began raising rates in March 2022. A reduction this week could be significant, as investors hope it will lower borrowing costs for companies, enhance earnings growth, and stimulate overall economic expansion.
Apple was among the notable drag among US stocks after analysts at firms, including Bank of America and JPMorgan, noted that shipping times could point to lighter demand for iPhone 16 Pro models than the prior year, CNBC reported.
On the other hand, Intel Inc. gained over 4% after the chipmaker reportedly qualified for as much as $3.5 billion in government grants to make semiconductors for the US Department of Defense.
US Fed Meeting: The Key Indicator That Signals Aggressive Rate Cuts As Recession Fears Rise
Meanwhile, the US Dollar weakened. The Bloomberg Dollar Spot Index fell 0.4% to 100.7, as the British Pound, Japanese Yen and the Euro gained.
The yield on benchmark 10-year US Treasuries was little changed at 3.65%.
International benchmark Brent crude oil rose by 2% to $73.05 per barrel. This increase was attributed to ongoing disruptions in American Gulf oil infrastructure, which helped offset persistent demand concerns following recent Chinese economic data. Investors are also awaiting a possible US interest rate cut later this week.
Gold advanced to another record high of $2,589.7 an ounce, up 0.5%, as a weaker dollar and the prospects of aggressive U.S. monetary policy easing boosted non-yielding bullion’s appeal.
