Wall Street pulls back ahead of Fed signal, data
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The news: The Dow Jones index and the S&P 500 closed lower, pulling back from recent record highs driven by China's sweeping stimulus package, as investors await signals on upcoming interest rate cuts.
The numbers: Among the main indices: Dow Jones fell 0.70%, the S&P 500 was down 0.19%, and Nasdaq gained 0.04%. Nine out of the 11 S&P 500 sectors fell, led by energy stocks, which fell 1.9%.
The context: The blue-chip Dow slipped after hitting record highs, pressured by a decline in Amgen, which reported mixed data on two drugs, sparking concerns over heightened competition.
Shares of Ford and General Motors fell over 4% after Morgan Stanley lowered its recommendations on the automakers. Citigroup, Bank of America and JPMorgan & Chase weighed on the broader bank index, which dropped 0.93%.
Tech stocks bucked the trend overnight with a 0.5% rise, supported by Nvidia's 2.14% gain. Apple shares slipped 0.52% as sales of foreign-branded smartphones, including iPhones, in China fell in August on an annual basis, data from a research firm showed.
Hewlett Packard Enterprise topped the S&P 500 with a 5.14% gain after Barclays' rating upgrade. The S&P 500 and the tech-heavy Nasdaq have risen about 20% so far this year, driven by expectations of rate cuts and optimism about artificial intelligence. However, the S&P 500 is trading at valuations significantly above long-term averages.
The source: Reuters
