US close: Mixed macro data and Fed uncertainty weigh on Wall Street

(Sharecast News) - Major indices closed lower on Tuesday as the Federal Reserve's two-day policy meeting kicked off in Washington, DC.

At the close, the Dow Jones Industrial Average was down 0.27% at 45,757.90, while the S&P 500 shed 0.13% to 6,606.76 and the Nasdaq Composite saw out the session 0.07% weaker at 22,333.96.

The Dow Jones closed 125.55 points lower on Tuesday, more than erasing gains recorded in the previous session as Donald Trump's upbeat comments on trade negotiations with China and gains in heavyweight tech names gave major indices a boost.

Attention now turns to the Federal Reserve's policy meeting, which begins Tuesday, with a rate decision due on Wednesday. Futures markets have now priced in a 100% probability of a 25-basis point cut this month, though traders will also scrutinise chairman Jerome Powell's press conference for signals on the path ahead.

September's policy meeting follows the Senate's confirmation of Stephen Miran, Trump's nominee to join the central bank, adding another layer of political interest to this week's proceedings.

On the macro front, US import prices rose 0.3% month-on-month in August, according to the Bureau of Labor Statistics, defying expectations for a 0.2% decline. The July figure was revised down to a 0.2% gain from the initially reported 0.4%. The increase was led by higher prices for nonfuel imports, which offset a decline in fuel-related costs. On an annual basis, import prices were flat, compared with a 0.2% year-on-year decline in July. Export prices also rose 0.3% in August, beating consensus forecasts for a 0.1% decline and matching the revised July figure, which was previously reported at 0.1%. The BLS said the monthly gain was driven by stronger pricing for nonagricultural exports. Year-on-year, export prices advanced 3.4%, accelerating from a revised 2.4% increase in July.

Elsewhere, US retail sales rose 0.6% in August, according to the Census Bureau, outpacing expectations for a 0.2% gain and matching July's upwardly revised increase. Core retail sales, which exclude autos, fuel, building materials and food services, rose 0.7% in August, following a 0.5% gain in July. Much of the monthly increase was likely driven by higher prices rather than volume growth, with last week's inflation data pointing to the sharpest rise in consumer prices in seven months, particularly in food and apparel.

On another note, industrial production in the US rose 0.9% year-on-year in August, according to the Federal Reserve, marking a modest pickup in output across manufacturing, mining and utilities, while capacity utilisation held steady at 77.4% during the month, unchanged from July, suggesting stable operating rates across the industrial sector.

Still on data, US business inventories rose 0.2% month-on-month in July, according to the Census Bureau, matching market expectations. The increase was led by steady gains across manufacturing, wholesale, and retail inventories, suggesting stable supply chain conditions heading into the autumn.

Finally, the National Association of Home Builders/Wells Fargo housing market index held steady at 32 in September, the same as in August and June. September's reading fell short of market expectations of 33, underscoring persistent weakness in the housing market. Current sales conditions remained steady at 35, while buyer traffic slipped one point to 21. The latest HMI survey also highlighted deepening challenges, with 39% of builders cutting home prices in September, up from 37% in August and marking the highest share since the Covid-19 pandemic.

No major corporate earnings were released on Tuesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $25.27 2.02%

Chevron Corp. (CVX) $159.54 1.42%

Dow Chemical Co. (DOW) $24.48 1.28%

Caterpillar Inc. (CAT) $440.67 1.09%

Procter & Gamble Co. (PG) $158.05 0.78%

Apple Inc. (AAPL) $238.15 0.61%

International Business Machines Corporation (CDI) (IBM) $257.52 0.50%

McDonald's Corp. (MCD) $303.29 0.40%

Visa Inc. (V) $340.03 0.29%

JP Morgan Chase & Co. (JPM) $309.19 0.09%

Dow Jones - Fallers

Unitedhealth Group Inc. (UNH) $339.78 -2.33%

Travelers Company Inc. (TRV) $271.95 -1.57%

Salesforce.Com Inc. (CRM) $239.31 -1.32%

Microsoft Corp. (MSFT) $509.04 -1.23%

Johnson & Johnson (JNJ) $176.46 -0.53%

Amgen Inc. (AMGN) $273.08 -0.48%

Nike Inc. (NKE) $72.75 -0.38%

Boeing Co. (BA) $215.02 -0.34%

Walt Disney Co. (DIS) $115.23 -0.34%

Home Depot Inc. (HD) $421.45 -0.30%

S&P 500 - Risers

Apache Corp. (APA) $24.51 6.98%

Apartment Investment & Management Co. (AIV) $7.85 5.80%

Occidental Petroleum Corp. (OXY) $47.76 5.04%

National Oilwell Varco Inc. (NOV) $13.30 4.72%

Hershey Foods Corp. (HSY) $193.45 4.25%

Helmerich & Payne Inc. (HP) $21.77 4.11%

Kohls Corp. (KSS) $16.65 3.74%

Devon Energy Corp. (DVN) $34.97 3.55%

Valero Energy Corp. (VLO) $162.64 3.22%

Archer-Daniels-Midland Co. (ADM) $62.35 3.01%

S&P 500 - Fallers

Gap Inc. (GAP) $22.64 -5.35%

CenturyLink Inc. (LUMN) $5.54 -5.30%

Emerson Electric Co. (EMR) $129.03 -4.89%

Lincoln National Corp. (LNC) $39.44 -4.39%

TripAdvisor Inc. (TRIP) $18.06 -4.24%

Principal Financial Group Inc (PFG) $80.09 -3.45%

Eversource Energy (ES) $63.42 -3.21%

Prudential Fincl Inc. (PRU) $102.15 -3.13%

NiSource Inc. (NI) $39.37 -2.89%

Everest Group (EG) $330.63 -2.71%

Nasdaq 100 - Risers

Qvc Group Inc Series A (QVCGA) $14.43 19.12%

Baidu Inc. (BIDU) $123.79 7.81%

Trip.com Group Limited (TCOM) $76.58 3.32%

JD.com, Inc. (JD) $34.71 3.24%

Tesla Inc (TSLA) $421.62 2.82%

Monster Beverage Corp (MNST) $66.16 2.81%

Mercadolibre Inc. (MELI) $2,390.14 2.33%

Starbucks Corp. (SBUX) $84.37 2.04%

Microchip Technology Inc. (MCHP) $64.45 2.03%

Intel Corp. (INTC) $25.27 2.02%

Nasdaq 100 - Fallers

Dollar Tree Inc (DLTR) $95.48 -1.83%

Wynn Resorts Ltd. (WYNN) $120.68 -1.77%

Hasbro Inc (HAS) $74.69 -1.72%

Workday, Inc. (WDAY) $219.01 -1.68%

eBay Inc. (EBAY) $88.85 -1.67%

Nvidia Corp. (NVDA) $174.88 -1.61%

Booking Holdings Inc. (BKNG) $5,475.01 -1.53%

Gilead Sciences Inc. (GILD) $110.86 -1.49%

Expedia Group Inc. (EXPE) $224.98 -1.43%

Verisk Analytics Inc. (VRSK) $251.83 -1.27%