Wall Street Holds Steady Amid Market Swings, Federal Reserve Watch/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks showed stability on Monday after weeks of sharp declines, with the S&P 500 rising 0.2% and the Dow gaining 144 points. Investors are awaiting the Federal Reserve’s interest rate decision on Wednesday, while concerns over President Trump’s trade policies continue to weigh on the market. A mixed retail sales report showed weaker-than-expected consumer spending but did not indicate an imminent recession. Intel and PepsiCo saw gains, while Tesla dropped 5.2% amid brand concerns. Global markets also saw modest gains, with China reporting stronger-than-expected factory data.
Wall Street Steadies Ahead of Fed Meeting: Quick Looks
- S&P 500 Gains 0.2%: A rebound following four straight losing weeks.
- Dow Rises 144 Points: Market sentiment improves ahead of the Fed’s announcement.
- Nasdaq Slips 0.3%: Tech stocks continue to show volatility.
- Fed Decision Looms: Investors await Jerome Powell’s interest rate update on Wednesday.
- Retail Sales Report Mixed: Consumer spending slowed, but recession fears remain limited.
- Intel Surges 7.9%: Semiconductor industry veteran Lip-Bu Tan named CEO.
- PepsiCo Up 2%: Company announces $1.65 billion acquisition of Poppi.
- Tesla Falls 5.2%: Concerns grow over its association with Elon Musk’s political ties.
- Global Markets Rise: China sees stronger factory data, boosting market sentiment.
Stock Market Holds Steady as Investors Await Fed Decision
Wall Street calmed Monday, with stocks showing stability after weeks of sharp swings. The S&P 500 gained 0.2%, the Dow Jones rose 144 points, and the Nasdaq slipped 0.3%.
This brief period of steadiness comes as investors brace for Wednesday’s Federal Reserve meeting, where Chair Jerome Powell will provide guidance on future interest rate cuts.
Market Drivers: What’s Moving Stocks?
1. Federal Reserve’s Rate Decision Looms
The Federal Reserve is set to announce its latest interest rate decision on Wednesday, with Wall Street watching closely for clues on future rate cuts.
- The Fed has kept rates steady in 2025 after multiple cuts last year aimed at supporting the economy.
- Investors are pricing in two or three rate cuts this year, but the risk of inflation creeping back up has kept the Fed cautious.
Why it matters: If the Fed signals aggressive rate cuts, it could boost markets. But if Powell expresses concern over inflation, stocks could face more volatility.
2. Trade Uncertainty Continues to Weigh on Investors
Markets remain on edge over President Donald Trump’s trade policies, with concerns that tariffs and economic uncertainty could hurt consumer and business spending.
- Recent surveys show declining consumer confidence, raising fears that people may cut back on spending.
- Retail sales data for February came in weaker than expected, adding to concerns about economic momentum.
- Auto sales and lower fuel costs were key factors in the slowdown, but analysts say the broader economy is not in a recession.
3. Stock Movers: Intel and PepsiCo Rise, Tesla Struggles
While the broader market remained stable, several big-name stocks saw significant moves:
- Intel surged 7.9% after naming Lip-Bu Tan as its new CEO, boosting confidence in the company’s future strategy.
- PepsiCo gained 2% after announcing a $1.65 billion acquisition of Poppi, a growing prebiotic soda brand.
- Tesla dropped 5.2%, continuing its recent struggles as investors worry about its brand image being too closely tied to Elon Musk and political controversies.
4. Global Markets See Gains
Stock markets across Europe and Asia showed modest gains, with China’s markets rising after positive economic data.
- Chinese stocks climbed after the government reported better-than-expected factory output.
- Hong Kong’s Hang Seng Index rose 0.8%, while Shanghai’s composite index gained 0.2%.
5. Treasury Yields Fluctuate on Economic Data
Bond markets showed mixed signals, with Treasury yields rising before reversing course.
- The 10-year Treasury yield initially jumped to 4.33% after the retail sales report, signaling some confidence in the economy.
- However, it quickly pulled back to 4.28%, suggesting ongoing uncertainty among bond investors.
What’s Next for the Market?
The Federal Reserve’s Wednesday announcement is expected to set the tone for markets in the coming weeks. Investors will be watching for:
- Powell’s comments on interest rate cuts and inflation.
- How the Fed assesses economic risks, particularly consumer spending and global trade issues.
- Market reaction to continued uncertainty in Washington, including tariff policies and economic legislation.
For now, markets are catching their breath, but volatility could return quickly depending on what Powell signals on Wednesday.
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