Stock markets saw a slight downturn on Tuesday morning as investors held their breath in anticipation of the Federal Open Market Committee (FOMC) meeting and the inaugural public offering (IPO) of Instacart. The S&P 500 index (^GSPC) and the Dow Jones Industrial Average (^DJI) both recorded a 0.2% drop, while the Nasdaq Composite index (^IXIC) registered a more substantial decline of over 0.4%.
The FOMC, in its widely awaited meeting, is anticipated to maintain current interest rates, with much of the market’s attention focused on remarks by Fed Chair Jerome Powell regarding the forthcoming November session. Additionally, investors are keenly attuned to any new cues on future economic moves gleaned from the updated Summary of Economic Projections, often referred to as the “dot plot.” In a research analysis preceding the meeting, David Mericle, Chief US Economist at Goldman Sachs, opined, “We anticipate the median dot will continue to signal an additional hike this year, projecting rates in the range of 5.5-5.75%, presumably in November.”
Simultaneously, market participants are closely monitoring the public market debut of Instacart, scheduled during Tuesday’s trading session. The grocery delivery service fixed its share price at $30, assigning it a valuation of approximately $10 billion. Analysts versed in Initial Public Offerings suggest that Instacart’s market entry may serve as a gauge for the overall health of the IPO sector as it progresses along its trajectory of recovery.
Crude oil prices remained elevated, nearing a 2023 peak. West Texas Intermediate (CL=F) surged past $92 per barrel, while Brent crude (BZ=F) stood at $95.
On the preceding day, the United Auto Workers (UAW) announced their intention to bar workers from Stellantis (STLA), General Motors (GM), and Ford (F) factories if negotiations show no discernible progress by Friday.
In sum, the investment community is keeping a vigilant eye on Wall Street to discern how the outcomes of the FOMC meeting and the Instacart IPO will impact the markets and shape the trajectory for the remainder of the week.
Source: Yahoo Finance