U.S. equity indexes showed mixed results on Monday as investors awaited the Federal Reserve’s key monetary policy decision later this week. The Dow Jones Industrial Average rose 0.5% to 41,619.4, and the S&P 500 edged up 0.1% to 5,630.5, recovering from earlier losses. In contrast, the Nasdaq Composite dropped 0.5% to 17,594.8. Financials and energy stocks led the gains, while technology and consumer discretionary sectors saw declines.
The Federal Reserve’s two-day meeting is set to begin on Tuesday, with an announcement on interest rates expected Wednesday. Currently, there’s a 37% chance that the Fed will opt for a 25 basis point rate cut, though some analysts anticipate a more aggressive 50 basis point reduction, according to the CME FedWatch tool. Several prominent institutions, including Goldman Sachs and Oppenheimer Asset Management, predict a quarter-percentage-point cut.
Yields on U.S. Treasury bonds declined, with the 10-year yield dropping 2.6 basis points to 3.62%, and the two-year yield falling by 1.5 basis points to 3.56%. Oil prices climbed, with West Texas Intermediate crude rising by 2.6% to $70.45 per barrel, supported by supply concerns.
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