- Major US indexes dipped lower on Tuesday as investors awaited a signal on the direction of interest rates from Federal Reserve Chairman Jerome Powell.
- Powell is scheduled to speak later this week at the Jackson Hole Symposium, and investors are speculating he may suggest more interest rate cuts will come this year.
- President Trump reiterated that he believes the Fed should lower rates by 100 basis points "over time" while speaking to reporters at the White House on Tuesday.
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Stock slid on Tuesday as investors remained on edge over how the Federal Reserve will move forward with monetary policy amid signs of a weakening global economy.
Powell is scheduled to speak at the Jackson Hole Symposium later this week, and investors are hoping the chairman will give an indication of which direction the Fed plans on moving with interest rates.
President Trump continued calling on the Fed to cut rates by 100 basis points while speaking with reporters at the White House on Tuesday. The president also floated the idea of a payroll tax cut as a way to boost the economy.
Investors are eager to hear what Powell has to say as other central banks around the world have indicated they plan to lower rates in the coming months. The European Central Bank is expected to slash borrowing costs in September, while China changed how commercial banks charge interest on loans in an attempt to push rates lower.
Here’s a look at the major indexes as of the 4 p.m. close on Tuesday:
- The S&P 500 fell 0.79%, to 2,900.51.
- The Dow Jones Industrial Average slid 0.66%, to 25,962.44.
- The Nasdaq Composite declined 0.68%, to 7,948.56.
Wall Street regulators approved an update to the Volcker Rule, a regulation that was in put in place after the 2008 financial crisis to prevent banks from using their own capital to make certain types of short-term investments. The revamped policy will provide more clarity on which types of investments banks can make, as well as to what extent banks can invest in hedge funds and private equity firms.
Shares of Beyond Meat soared more than 9% after JPMorgan upgraded the stock to "overweight" from "neutral," making it the first firm in months to give the company a positive rating. JPMorgan cited recent share declines and solid operating performance as the justification for the upgrade.
Sarepta Therapeutics tanked as much as 20% after the FDA rejected its second drug meant to treat a rare form of muscular dystrophy. The FDA cited risk of infection from intravenous infusion ports and kidney toxicity for its decision, which the company’s CEO said the agency hadn’t mentioned as concerns before.
Within the S&P 500, these were the largest gainers:
And the largest decliners:
Ten of the eleven sectors in the S&P 500 fell on Tuesday. Financial stocks fell 1.4%, as materials and consumer staples slid more than 1.1%.
- The market’s biggest investors just traded like they do right before ‘serious damage’ is inflicted on stocks — and one expert warns another painful meltdown could soon strike
- ‘Something does not compute’: A prominent chief economist explains why conflicting signals in the stock and bond markets are ‘very dangerous’
- A chief wealth adviser overseeing $170 billion told us where he’s putting client money as a turbulent environment rocks markets