US stock indices fell at the end of trading on Tuesday, with the start of the Federal Reserve’s two-day meeting, in light of widespread expectations of stabilizing interest rates.
Pressure on stocks increased as Treasury bond yields rose to their highest levels in more than a decade, with markets assessing the resilience of the world's largest economy despite the central bank's tightening of monetary policy.
House Speaker Kevin McCarthy announced the postponement of the vote on a temporary short-term financing plan, after it was scheduled to take place today, with the aim of avoiding a government shutdown after the current funding for federal agencies ends on September 30.
At the end of trading, the Dow Jones Industrial Average fell by 0.3%, or 106 points, to 34,517 points, its lowest closing level since September 7.
The S&P 500 index fell by about 0.2%, or 9 points, at 4,443 points, its lowest level since August 28.
The Nasdaq index also fell by about 0.25%, equivalent to 32 points, at 13,678 points, its lowest level since August 25.
While the grocery delivery company Instacart's stock rose by 12.35% to $33.7, exceeding the predetermined IPO price of $30, following its listing for trading on the American Nasdaq stock exchange during today's session.
Goldman Sachs believes that the Federal Reserve has finished raising rates this year, even if the chart it will release after the end of the monetary policy meeting tomorrow shows the possibility of raising rates again.
US Treasury Department data showed that public debt rose to $33.04 trillion, for the first time ever, compared to about $907 billion four decades ago, despite tight control over government spending.
Looking at European markets, the European STOXX 600 index stabilized at 456.5 points, with gains in the banking, energy and automobile sectors, in light of losses in the technology sector.
While the British “FTSE 100” rose by 0.1% to 7,660 points, and the French “CAC” increased by almost the same percentage at 7,282 points, the German “DAX” fell by 0.4%, recording 15,664 points.
In Japan, the Nikkei index closed down 0.85% to 33,242 points, while the broader Topix index settled at 2,430 points.
In the oil market, Brent crude futures for November delivery fell by 0.1%, equivalent to 9 cents, at $94.34 per barrel, after rising during the session to $95.95.
The price of US Nymex crude for November delivery also decreased by 0.1%, or 10 cents, to record $90.48 per barrel, after touching $92.43 during trading.
Regarding gold, futures contracts for the yellow metal for December delivery settled at $1,953.7 per ounce, which is the highest settlement since the beginning of September.
New home construction activity in the United States declined 11.3% during August, marking the lowest pace since June 2020, while building permits hit their highest level since October 2022, increasing 6.9% to a rate of 1.54 million permits during the month.
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