Following the weakness seen in the previous session, stocks showed a lack of direction over the course of the trading day on Tuesday. The major averages spent the day bouncing back and forth across the unchanged line.
The major averages eventually ended the day modestly lower. The Dow dipped 94.87 points or 0.2 percent to 48,367.06, the Nasdaq slipped 55.27 points or 0.2 percent to 23,419.08 and the S&P 500 edged down 9.50 points or 0.1 percent to 6,896.24.
Traders initially seemed reluctant to make significant moves ahead of the release of the minutes of the Federal Reserve’s latest monetary policy meeting.
However, trading activity remained subdued after the release of the minutes, which reiterated officials’ mixed views about the outlook for interest rates.
The minutes revealed participants expressed a “range of views” about the restrictiveness of the Fed’s current monetary policy stance.
Most participants judged that further rate cuts would likely be appropriate if inflation declined over time as expected, the Fed said.
However, the Fed noted some participants felt it would likely be appropriate to keep rates unchanged for “some time” following the quarter point rate cut at the December meeting.
The Fed’s next monetary policy meeting is scheduled for January 27-28, with CME Group’s FedWatch Tool indicating an 83.9 percent chance the central bank will leave rates unchanged.
The choppy trading on Wall Street also came as some traders remain away from their desks ahead of the New Year’s Day holiday on Thursday.
Sector News
Reflecting the lackluster performance by the broader markets, most of the major sectors showed only modest moves on the day.
Biotechnology stocks showed a significant move to the downside, however, with the NYSE Arca Biotechnology Index falling by 1.5 percent.
On the other hand, telecom stocks saw notable strength on the day, driving the NYSE Arca North American Telecom Index up by 1.1 percent. Energy and gold stocks also moved higher.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index shed 0.4 percent, while Hong Kong’s Hang Seng Index jumped by 0.9 percent.
Meanwhile, the major European markets all moved to the upside on the day. While the U.K.’s FTSE 100 Index advanced by 0.8 percent, the French CAC 40 Index climbed by 0.7 percent and the German DAX Index rose by 0.6 percent.
In the bond market, treasuries gave back ground following the strength seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 1.4 basis points to 4.130 percent.
Looking Ahead
A report on weekly jobless claims may attract some attention on Wednesday, although trading activity is likely to remain subdued ahead of the New Year’s Day holiday on Thursday.
Business News
U.S. Stocks Finish Choppy Trading Day Modestly Lower
2025-12-30 21:09:34
