Stocks fall as dollar rises, gold falls with Fed rate path in question

Market Overview - MSCI's global equities gauge fell, indicating a decline in investor confidence as they reacted to cautious comments from Federal Reserve Chair Jerome Powell regarding potential interest rate cuts [1][2] - The U.S. dollar strengthened while gold prices decreased, reflecting a shift in investor sentiment ahead of key economic data releases [1][7] Federal Reserve Insights - Powell emphasized the need for a balanced approach in monetary policy, considering the risks of high inflation against a weakening job market [2][3] - Traders are still anticipating a rate cut in October, as indicated by CME Group's FedWatch tool [2] Economic Data Impact - New U.S. single-family home sales surged by 20.5% in August, reaching an annualized rate of 800,000 units, significantly higher than the forecasted 650,000 units [4] - The stronger-than-expected housing market data suggests that the economy may not necessitate further rate cuts by the Fed [4] Market Performance - The Dow Jones Industrial Average fell by 171.50 points (0.37%) to 46,121.28, the S&P 500 decreased by 18.95 points (0.28%) to 6,637.97, and the Nasdaq Composite dropped by 75.62 points (0.33%) to 22,497.86 [6] - The pan-European STOXX 600 index closed down by 0.19%, while European defense stocks rose by 1.5% following positive comments regarding Ukraine's territorial recovery [6][7] Upcoming Economic Indicators - Investors are awaiting the Personal Consumption Expenditures report for August, which includes the Fed's preferred inflation measure, expected to provide further insights into monetary policy direction [5]