U.S. benchmark equity indexes closed lower on Tuesday as the Federal Reserve commenced its two-day monetary policy meeting while investors gauged the latest economic indicators. Markets widely anticipate that the central bank's Federal Open Market Committee will implement a quarter-percentage-point cut in its benchmark lending rate on Wednesday, based on insights from the CME FedWatch tool.
This would represent the second successive 25-basis-point reduction, following a more significant 50-basis-point cut in September. In the housing sector, U.S. homebuilder confidence remained stable in December. Nonetheless, high prices and elevated mortgage rates tempered the renewed optimism triggered by an anticipated improvement in the regulatory landscape next year, as indicated by data from the National Association of Home Builders and Wells Fargo.
"While builders are expressing concerns that high interest rates, elevated construction costs and a lack of buildable lots continue to act as headwinds, they are also anticipating future regulatory relief in the aftermath of the election," remarked Carl Harris, the association chairman. In commodity markets, January West Texas Intermediate crude oil settled down $0.50 at $70.21 per barrel, whereas February Brent crude, viewed as the global benchmark, decreased by $0.61 to $73.30 as demand weakened in China.
In corporate developments, shares of Pfizer surged by 4.7% after the pharmaceutical titan projected an increase in earnings for 2025, with revenue expectations aligning with this year's likely results. The company is focused on maintaining a strategy of 'disciplined execution' alongside cost reduction measures.
Conversely, Amentum faced a decline of 9.6% in its shares, a day after announcing decreased fiscal Q4 pro forma non-GAAP net income and revenue figures..