Stocks end lower amid Fed meeting, Instacart IPO: Today’s stock market news


Stocks recovered almost all of their losses Tuesday afternoon as the Federal Reserve’s latest policy meeting got underway and investors digested the state of the IPO market after… Instacart’s public appearance On Nasdaq.

Standard & Poor’s 500 (^ GSBC(and Nasdaq Composite)^ IX) and decreased by about 0.2%. Dow Jones Industrial Average (^ DJI) and fell about 0.3%, or 106 points.

The Federal Open Market Committee began its meeting Tuesday morning at 10:30 a.m., with the focus still on the path forward for interest rates amid the Fed’s battle against inflation.

With investors’ bets now priced at a 99% chance that the Fed will keep interest rates steady, according to… CME FedWatch toolMuch of investors’ focus is on what Fed Chair Jerome Powell says about the November meeting and any new indication of future moves from the updated summary of economic forecasts, or The so-called “point plot”.

“Fed officials have indicated they can proceed cautiously at this point and will leave the funds rate target range unchanged at 5.25-5.5% at their September meeting,” David Merkel, chief U.S. economist at Goldman Sachs, wrote in a preview research note. “. the meeting. “The immediate question for markets is whether the midpoint will continue to expect a further rise this year to 5.5-5.75%, which is supposed to be in November. We think it will, but only by a small majority, and partly for the strategic purpose. On flexibility.”

Read more: What the latest plan to raise federal interest rates means for bank accounts, CDs, loans and credit cards

US Federal Reserve Chairman Jerome Powell arrives for a news conference in Washington on June 14, 2023. REUTERS/Kevin Lamarque

Elsewhere, investors will be closely watching Instacart, which began trading Tuesday afternoon on the Nasdaq under the ticker. shopping cart. The stock quickly rose nearly 40% from its IPO set price of $30 per share. By market close, Instacart had given up some gains and was up 12% on the day.

The grocery delivery chain was valued at about $10 billion entering the first day of trading. Some underwriting experts He told Yahoo Finance That the grocery delivery service debuts on the public market could be an indicator of where the IPO market stands on its path to recovery.

In commodities, rising oil prices were in focus, as were gas prices It reached a new 2023 high on Monday. West Texas Intermediate (each = qIt fell 0.3% on Tuesday, just above $91 per barrel. Brent crude (Bz = FIt fell 0.1 percent to about $94 a barrel.

The United Auto Workers (UAW) strike continued into Tuesday after the UAW strike It was announced late Monday It will prevent workers from further Stellantis (STLA), gm (GM), and Ford (F) plants if no progress is made in contract negotiations by Friday.

Trending indicators

  • New (New(its shares fell by more than 17% after the Chinese electric car maker announced plans to offer convertible bonds worth $1 billion, similar to the shares of its electric car competitor Nikola)NKLA) and Fisker (FSR).

  • disney (Dis) fell more than 3% after the entertainment group announced a plan to expand investment in its parks, experiences and products. Over the next ten years, Disney plans to spend approximately $60 billion in this category.

  • roadblock (Field) by more than 2% after the company announced that Alyssa Henry will leave her position as CEO of Square. Jack Dorsey, founder and CEO of Block, will now also become CEO of the company.

Josh Schaeffer is a reporter for Yahoo Finance.

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