S&P 500 Inches Down as Investors Brace for Fed Decision

Lead The S&P 500 slipped 0.1% to 6,606.76 on Wednesday as Wall Street held its breath ahead of the Federal Reserve’s widely anticipated rate cut later in the day.

Nut Graf With the Federal Open Market Committee poised to trim borrowing costs by 25 basis points, market participants tempered their positions, driving defensive sectors higher while technology and real estate stocks lagged.

Market Snapshot

• Utilities and real estate sectors led declines, falling 1.8% and 0.6%, respectively.
• Defensive plays outpaced growth, as the CBOE Volatility Index climbed 4.3% to 16.36.
• Nvidia shares dipped 1.6%, weighing on the tech-heavy Nasdaq Composite.
• Advancers marginally outnumbered decliners on the NYSE by a 1.07-to-1 ratio.

Fed Watch Traders have fully priced in a quarter-point cut at 2:30 p.m. ET, with attention turning to Chair Jerome Powell’s post-meeting press conference for guidance on the timing of further easing moves.

Sector Highlights

• Utilities (XLU): Off 1.8%, as bond-like stocks gained from falling Treasury yields.
• Real Estate (XLRE): Down 0.6%, as investors awaited clarity on future financing costs.
• Information Technology: Moderated losses despite broader market caution, with megacaps holding near record highs.

Looking Ahead Markets will gauge Powell’s comments for signals on two additional cuts anticipated later this year. Any hint of hesitation could trigger renewed volatility.