As the trading session approaches its conclusion this Tuesday, the US benchmark equity indexes are grappling for a definitive direction. Investors are meticulously evaluating the most recent economic reports while eagerly anticipating the Federal Reserve's forthcoming monetary policy decision. In the latest updates, the Dow Jones Industrial Average and the S&P 500 experienced a slight decline of 0.1% each, settling at 41,565.1 and 5,625.9, respectively.
Conversely, the Nasdaq Composite managed to see a marginal increase of 0.1%, reaching 17,603.4. Among the various sectors analyzed, health care emerged as the most pronounced decliner, while energy stocks led the upward movement. In relation to consumer behavior, data from the Census Bureau indicates that US retail sales for August surpassed Wall Street expectations, rising against prior forecasts predicting a downturn.
However, it's crucial to note that the growth rate displayed signs of moderation, attributable to falling sales figures in key areas such as gas stations and motor vehicles. Additionally, the confidence level among US homebuilders showed significant improvement for the first time in five months according to a study by the National Association of Home Builders and Wells Fargo.
This boost in confidence can be attributed to a consistent decline in mortgage rates, presenting a more favorable outlook for housing sector growth. In the bond markets, the yields observed noteworthy movements with the US two-year yield inching up by 3.7 basis points to reach 3.59%. Simultaneously, the yield for the 10-year note also experienced an increment of 1.9 basis points, climbing to 3.64%. The markets are currently pricing in a 65% chance that the Federal Reserve's monetary policy committee will opt to lower its benchmark lending rate by 50 basis points at their anticipated meeting on Wednesday.
The remaining probabilities lean toward a smaller 25-basis-point reduction, as indicated by the analysis provided by the CME FedWatch tool. On the commodity front, West Texas Intermediate crude oil prices recorded an increase of 1.8%, bringing the price per barrel to $71.38. This uptick in oil prices reflects ongoing market dynamics and investor sentiment surrounding energy commodities. As investors continue to assess these economic indicators and the potential moves by the Federal Reserve, market participants remain on high alert for any shifts that may arise from the upcoming policy decisions..