Stocks continued to sell off Tuesday, with the S&P 500 extending its daily losing streak to four. Amid a relatively bare economic calendar, investors' attention continued to be focused on next week's Federal Reserve meeting. Uncertainty over the central bank's next steps regarding monetary policy is impacting price action, particularly following the recent releases of data showing the U.S. economy remains resilient even in the face of this year's aggressive rate-hiking campaign.
"Market consolidation continues in U.S. equities as investors weigh the odds and impact of future Fed moves against persistent inflation and the threat of recession," says Dan Wantrobski, technical strategist and associate director of research at Janney Montgomery Scott. The market will likely remain choppy-to-higher into year-end, "with more emphasis on the 'choppy' part over the near-term," Wantrobski adds, "as benchmarks like the S&P digest recent gains against a still uncertain macro climate heading into the New Year."
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Looking at today's price action, 10 of the 11 sectors finished in the red. Communication services (-2.9%) suffered the biggest drop on weakness in social media stocks Meta Platforms (META, -6.8%) and Snap (SNAP, -6.7%). Energy (-2.6%) was also a notable decliner as U.S. crude futures plummeted 3.5% to $74.25 per barrel – their lowest settlement of the year.
As for the major indexes, the tech-heavy Nasdaq Composite slumped 2.0% to 11,014, the broader S&P 500 Index fell 1.4% to 3,941, and the blue-chip Dow Jones Industrial Average gave back 1.0% to 33,596.
The Investment Case for Intel Stock
Semiconductor stocks had another miserable session, but one notable name had a less-terrible day than its peers. Intel (INTC) shed 2.0%, which wasn't great, but it was still better than fellow chip stocks Advanced Micro Devices (AMD, -4.6%) and Nvidia (NVDA, -3.8%). This comes after the chipmaker on Monday said it is on track to regain market share it has lost to competitors over the years.
"Whether INTC can catch up on manufacturing remains debatable, but we remain impressed by management's commitment to making the organization far more efficient and cost effective," says UBS Global Research analyst Timothy Arcuri, who has a Neutral (Hold) rating on INTC stock. Arcuri's not alone in his view that Intel remains a "show-me" story, but should investors feel that way too? Read on as we take a closer look at the investment case for Intel stock.
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Lennar Stock Remains a Buy Despite Gross Margin ConcernsLennar stock is lower Friday as worries over gross margin estimates offset a fiscal Q3 beat. Here's what you need to know.
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Price-Target Cuts Roll In for FedEx Stock After Big Earnings MissFedEx stock is plunging Friday after the logistics giant came up short of earnings expectations and revised its full-year outlook. Here's what you need to know.
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Stock Market Today: Dow Gains 522 Points in Fed-Fueled SessionThe blue chip index closed above the psychologically significant 42,000 level for the first time ever Thursday.
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Stock Market Today: Stocks Swing Lower After Fed's Jumbo Rate CutThe Federal Reserve caught plenty of folks off-guard with its jumbo-sized half-percentage point rate cut.
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Fed Goes Big With First Rate Cut: What the Experts Are SayingFederal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
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Stock Market Today: Stocks Waver Near All-Time Highs Ahead of Fed Rate CutEquities were torn between discounting a quarter-point cut and a half-point cut to interest rates tomorrow.
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Stock Market Today: Dow Hits Record High Ahead of Fed MeetingAll eyes are on this Wednesday's Fed announcement, with expectations for a jumbo-sized rate cut rising.
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Stock Market Today: Stocks Rise as Fed Rate Cuts NearThe main indexes closed out the day and week notably higher as excitement swirls ahead of next week's rate cut.
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Stock Market Today: Stocks Rise in Choppy Day for MarketsModerna was the worst S&P 500 stock today after the vaccine maker slashed its R&D budget.
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Will the Fed Cut Rates in September? Here's What Experts Predict
The race is already on to predict the trajectory of future reductions to borrowing costs.
