US close: Stocks pull back as FOMC minutes quash rate-cut hopes

(Sharecast News) - US stocks fell for the third straight session on Tuesday, with the Dow and S&P 500 continuing to pull back from record highs, as rate-cut hopes diminished further.

The Dow and Nasdaq finished 0.2% lower, while the S&P 500 slipped 0.1%. Markets have pulled back since the Dow and S&P 500 both hit fresh peaks on Christmas Eve.

Minutes from the latest Federal Open Market Committee meeting suggested that policymakers would err on the side of caution when it comes to cutting interest rates in early 2026.

The Federal Reserve cut rates by 25 basis points in December, taking total reductions for 2025 to 75 basis points. The decision marked a shift from the previous two cuts, which were aimed at easing inflation pressures, with the central bank opting to lower rates as part of an effort to support a softening labour market.

However, the publication painted a picture of a divided Fed, with the decision said to be "finely balanced", with some raising concerns that the fight against inflation was not yet over.

Looking forward, some officials indicated that "it would likely be appropriate to keep the target range [for interest rates] unchanged for some time".

In equity news, shares in Intel rose, extending gains after Nvidia announced it had followed through on an announcement to buy a $5bn stake in the semiconductor company - first revealed in September.

Meanwhile, precious metal miners Newmont and Barrick were in demand as gold and silver prices rebounded following a big sell-off on Monday.

Economic data improves

On the macro front, US home prices rose 1.4% yearonyear in October, according to the S&P/CaseShiller national home price index, up slightly from the 1.3% annual gain recorded in September. However, sixteen of the twenty major metropolitan areas tracked by the index turned in monthonmonth declines, as high mortgage rates continued to weigh on affordability and dampen price momentum.

On another note, the Federal Housing Finance Agency's seasonally adjusted monthly house price index revealed US house prices edged up 0.4% in October. Prices were 1.7% higher than at the same time a year earlier, while September's previously reported flat reading was downwardly revised to a 0.1% decline.

Finally, the Institute for Supply Management's Chicago purchasing managers index increased to 43.5 in December, up from 36.60 in November and ahead of estimates of 39.5 to 39.8. The December reading marked a significant rebound from the prior month's low, but remained well below the 50.0 neutral mark, indicating that while the rate of decline has slowed, the Chicago business sector remained in its 25th consecutive month of contraction.

Dow Jones - Risers

Intel Corp. (INTC) $37.31 1.72%

Chevron Corp. (CVX) $152.43 0.95%

Unitedhealth Group Inc. (UNH) $332.02 0.94%

Dow Chemical Co. (DOW) $23.52 0.73%

Boeing Co. (BA) $218.80 0.72%

Verizon Communications Inc. (VZ) $40.75 0.68%

Walt Disney Co. (DIS) $114.86 0.58%

Travelers Company Inc. (TRV) $292.61 0.23%

Microsoft Corp. (MSFT) $487.69 0.12%

Coca-Cola Co. (KO) $70.21 0.07%

Dow Jones - Fallers

International Business Machines Corporation (CDI) (IBM) $302.52 -1.05%

Goldman Sachs Group Inc. (GS) $884.14 -0.90%

Cisco Systems Inc. (CSCO) $77.44 -0.45%

American Express Co. (AXP) $373.64 -0.45%

Merck & Co. Inc. (MRK) $106.23 -0.37%

3M Co. (MMM) $161.24 -0.30%

Amgen Inc. (AMGN) $328.76 -0.26%

Apple Inc. (AAPL) $273.08 -0.25%

Procter & Gamble Co. (PG) $144.23 -0.24%

Home Depot Inc. (HD) $346.84 -0.18%

S&P 500 - Risers

Under Armour, Inc. (UA) $4.94 8.88%

Under Armour Inc. Class A (UAA) $5.15 7.76%

TripAdvisor Inc. (TRIP) $14.70 6.75%

CenturyLink Inc. (LUMN) $7.80 3.31%

Occidental Petroleum Corp. (OXY) $41.53 2.78%

Coty Inc. Class A (COTY) $3.14 2.78%

AES Corp. (AES) $14.46 2.34%

Newmont Corporation (NEM) $101.87 2.07%

Diamondback Energy Inc. (FANG) $151.55 2.01%

Motorola Solutions Inc (MSI) $384.55 1.93%

S&P 500 - Fallers

Nektar Therapeutics (NKTR) $41.76 -2.27%

Kohls Corp. (KSS) $20.42 -2.16%

Franklin Resources Inc. (BEN) $23.85 -2.15%

Western Digital Corp. (WDC) $176.05 -1.99%

Albemarle Corp. (ALB) $142.18 -1.66%

Invesco Ltd. (IVZ) $26.44 -1.47%

Wynn Resorts Ltd. (WYNN) $120.34 -1.43%

KLA-Tencor Corp. (KLAC) $1,244.29 -1.28%

MGM Resorts International (MGM) $36.71 -1.21%

Gilead Sciences Inc. (GILD) $123.18 -1.19%

Nasdaq 100 - Risers

Baidu Inc. (BIDU) $132.38 4.39%

Intel Corp. (INTC) $37.32 1.74%

DENTSPLY Sirona Inc. (XRAY) $11.39 1.24%

Meta Platforms Inc. (META) $666.01 1.11%

American Airlines Group (AAL) $15.30 1.06%

Take-Two Interactive Software Inc. (TTWO) $258.31 1.02%

NetEase Inc. Ads (NTES) $140.44 0.79%

Kraft Heinz Co. (KHC) $24.43 0.76%

Asml Holdings N.V. (ASML) $1,072.01 0.56%

Skyworks Solutions Inc. (SWKS) $64.36 0.54%

Nasdaq 100 - Fallers

Western Digital Corp. (WDC) $176.05 -2.02%

JD.com, Inc. (JD) $28.72 -1.88%

Biomarin Pharmaceutical Inc. (BMRN) $58.99 -1.75%

Wynn Resorts Ltd. (WYNN) $120.34 -1.58%

Gilead Sciences Inc. (GILD) $123.18 -1.39%

Illumina Inc. (ILMN) $132.75 -1.29%

KLA-Tencor Corp. (KLAC) $1,244.29 -1.28%

Vertex Pharmaceuticals Inc. (VRTX) $454.02 -1.25%

Lam Research Corp. (LRCX) $173.78 -1.19%

Applied Materials Inc. (AMAT) $259.97 -1.17%