Core Viewpoint - U.S. equities are showing a cautious and mixed performance as investors await the Federal Reserve's interest rate decision, with major indexes hovering near flat lines [1][4]. Market Performance - The S&P 500 is up 0.2%, the Nasdaq Composite has increased by 0.3%, and the Dow Jones Industrial Average is leading with a 0.3% gain, reflecting a "wait-and-see" approach ahead of the Fed announcement [2][4]. Sector Performance - The energy sector is leading gains, while the utilities sector is also performing well. However, some areas face challenges, particularly the "Magnificent Seven" tech stocks, which are under increased competitive pressure [3][4]. Federal Reserve Meeting - The Federal Open Market Committee (FOMC) meeting is the primary focus, with expectations for a third consecutive quarter-point interest rate cut, with probabilities between 87% and 89.6% for this outcome [4][5]. Economic Data - The October Job Openings and Labor Turnover Survey (JOLTS) reported 7.67 million job openings, exceeding expectations of 7.2 million, which will influence the Fed's deliberations [6]. Corporate Earnings - AutoZone, Inc. shares fell by 6.7% after weaker-than-expected first-quarter results, while Home Depot shares slipped about 0.5% due to disappointing fiscal projections [7]. Major Stock News - Nvidia (NVDA) shares dipped 0.4% despite approval for limited sales of its H200 AI chips to China. Alphabet (GOOGL) stock rose by 1.3% amid a European Commission probe, while CVS Health (CVS) shares advanced 3% after raising full-year guidance [8][9][10]. Investment Highlights - Microsoft (MSFT) announced a $17.5 billion investment in India for AI development, and Structure Therapeutics (GPCR) saw a price target increase to $130 after positive drug data [10][11]. Exxon Mobil (XOM) climbed 3.4% after raising its profit forecast [12].
Markets Tread Cautiously as Fed Meeting Kicks Off, Nvidia News in Focus