The US stock market is eagerly awaiting the Federal Reserve’s latest monetary policy meeting, while keeping an eye on Instacart’s imminent debut on the Nasdaq.
Early Tuesday, both the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) saw a slight decline of around 0.2%. Meanwhile, the Nasdaq Composite (^IXIC) posted a slightly steeper decline, topping out at 0.4%.
As the Federal Open Market Committee meets, all eyes are on the Federal Reserve’s approach to interest rates in light of its ongoing battle against inflation. With a 99% probability, according to the CME FedWatch Toolthat rates will remain stable, investors are especially interested in Fed Chairman Jerome Powell’s comment on the November meeting. They also await new insights provided in the updated Summary of Economic Projections, often called a “dot plot.”
David Mericle, Goldman Sachs’ chief U.S. economist, offered a look at the planned meeting. He noted that Federal Reserve officials have signaled a cautious approach, likely keeping the funds rate in the 5.25-5.5% range throughout September. The immediate focus for markets is whether the midpoint will continue to project further gains this year, reaching between 5.5% and 5.75%, possibly in November. Mericle believes it will, albeit by a narrow margin, partly driven by strategic considerations aimed at maintaining flexibility.
Meanwhile, all eyes are on Instacart, set to make its debut on the Nasdaq under the symbol CART. The company has set an IPO price of $30 per share, valuing it at approximately $10 billion. This high-profile entry into the public market is closely watched by experts who believe it could signal the trajectory of the broader IPO market.
Additionally, the market is buzzing with rising oil prices, especially as gas prices hit a 2023 high on Monday. West Texas Intermediate (CL=F) saw initial trading rise by more than 1% on Tuesday, topping $92 per barrel. Brent crude oil (BZ=F) saw a modest rally of just over 0.5%, reaching $95 per barrel.
In other news, the United Auto Workers strike continues through Tuesday. The UAW has indicated plans to extend the strike to more Stellantis (STLA), GM (GM) and Ford (F) plants if progress is not made in contract negotiations by Friday.
Stay tuned for more updates as these events unfold in the dynamic stock market landscape.
Also read: Instacart Prepares for Nasdaq Debut Following Arm’s High-Profile Entry