U.S. benchmark equity indexes saw a decline before Tuesday's closing, coinciding with the commencement of a two-day monetary policy meeting by the Federal Reserve, as investors evaluated the latest economic indicators. The Dow Jones Industrial Average dropped by 0.8%, settling at 43,389.7, while the S&P 500 decreased by 0.6% to 6,040.5.
The Nasdaq Composite also fell, losing 0.5% to 20,067.5. Among the sectors, industrials experienced the most significant decline, with only consumer discretionary managing to secure a gain. Market expectations are building around a potential quarter-percentage-point reduction in the Federal Reserve's benchmark lending rate, scheduled for Wednesday as per the CME FedWatch tool.
Should this occur, it would represent a second consecutive 25-basis point reduction, following the 50-basis point cut in September. Additionally, U.S. 10- and two-year yields remained largely unchanged at 4.4% and 4.25%, respectively. On a positive note, U.S. retail sales saw a surge last month, exceeding projections largely driven by increased expenditures on automobiles, as indicated by data released from the Census Bureau. Homebuilder confidence in the U.S.
remained stable in December, with high home prices and mortgage rates somewhat offsetting a renewed optimism tied to an expected improved regulatory environment in the upcoming year, as reported by the National Association of Home Builders and data from Wells Fargo. In the commodity market, West Texas Intermediate crude oil declined by 0.6%, bringing the price down to $70.26 per barrel..