US stocks fell on Tuesday despite upbeat retail sales data as investors await the start of a highly-anticipated Federal Reserve policy meeting expected to usher in an interest-rate cut.
The Dow Jones Industrial Average (^DJI) slid roughly 0.5%, coming off an eighth straight day of losses for the blue-chip index. The benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) also lost about 0.5%. The Nasdaq closed at a record high on Monday.
Markets are waiting for Fed policymakers to kick off their final gathering of the year, amid almost total conviction that a 0.25% rate cut is coming on Wednesday. Some on Wall Street suspect it could be the last cut for some time, as inflation proves persistent. Given that, the focus is on clues to the path of rates next year — and in January, in particular.
The yield on the 10-year Treasury (^TNX) climbed as much as 4.42%, its highest in over three weeks, amid rising bets on the Fed turning cautious for next year.
In the meantime, investors assessed a November reading on retail sales for insight into the health of the consumer and the economy. Sales rose 0.7%, faster than the 0.6% month-on-month gain expected, amid strong holiday spending.
Eyes are also on Nvidia (NVDA) amid a stock tumble, down more than 10% from its November record close. The chip giant’s shares slid nearly 3% in early trade.
Elsewhere, crypto-linked stocks edged higher after bitcoin (BTC-USD) broke above $107,000 a token to keep its record-setting rally going. Shares of Coinbase (COIN), Mara Holdings (MARA), and MicroStrategy (MSTR) gained.
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