Ahead of the Federal Reserve’s upcoming meeting next week, US stocks exhibit a mixed pattern as investors closely monitor the market dynamics.
At 11:34 ET (14:19 GMT), the Dow Jones Industrial Average experienced a decline of 93 points or 0.3%. Meanwhile, the S&P 500 witnessed a rise of 0.3%, and the NASDAQ Composite recorded a gain of 0.6%.
Investors are assessing the possibility of the Federal Reserve raising interest rates again in the upcoming week. This comes after a series of consecutive rate hikes since last spring. The data indicates a slowing economy, but the tight labor market complicates the Fed’s decision-making.
Stocks rallied on Friday after a report that wage growth moderated last month. That gave some investors hope that the Fed could decide to pause rate hiking at next week’s meeting. The debt ceiling deal President Joe Biden signed into law over the weekend also helped lift sentiment.
With a reading of 50.3, the ISM services index fell below both expectations and the April reading.
Futures traders are putting a 75% probability on the Fed pausing next week. That doesn’t mean the end of interest rate increases, though. The traders are betting on the probability of a rate hike in July.
Shares of Apple Inc (NASDAQ:AAPL) were showing a 1.8% increase ahead of the company’s software developer conference. The conference is anticipated to feature the unveiling of Apple’s mixed reality headset and discussions about its artificial intelligence strategies.
Shares of Spotify (NYSE:SPOT) climbed by 3% following the company’s announcement of workforce reductions. Approximately 200 employees, equivalent to around 2% of the total workforce, are expected to be laid off due to the company’s prior investments in expanding its podcast division.
Oil company stocks experienced a rise after the weekend’s meeting among major oil-producing nations. Saudi Arabia’s agreement to slash an additional one million barrels per day of production in July and the extension of existing production targets by other allies into the next year contributed to this upward trend.