The S&P 500 Index ($SPX) (SPY) on Tuesday closed down -0.13%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.08%. September E-mini S&P futures (ESU25) fell -0.11%, and September E-mini Nasdaq futures (NQU25) fell -0.04%.
Stock indexes gave up an early advance on Tuesday and posted modest losses on long liquidation and position squaring ahead of Wednesday’s FOMC meeting results. The markets are expecting that the Fed will cut interest rates by 25 bp at Wednesday’s conclusion of the 2-day FOMC meeting. However, the markets will focus on the Fed’s new quarterly interest rate projections, or dot plot, to see if policymakers’ expectations match swaps market projections for a total of 70 bp in rate cuts by year’s end.
