US benchmark equity indexes experienced an uptick as investors eagerly await the Federal Reserve's latest monetary policy decision scheduled for 2 pm ET. The Dow Jones Industrial Average and the Nasdaq Composite both increased by 0.3%, reaching 43,576.7 and 20,162.9, respectively, while the S&P 500 climbed 0.2% to settle at 6,061.6.
Among various sectors, technology emerged as the leading gainer, whereas real estate faced notable declines. Market analysts largely anticipate a reduction in the central bank's benchmark lending rate by a quarter-percentage point, as indicated by the CME FedWatch tool. This would represent the second consecutive 25-basis-point cut after a significant 50-basis-point decrease in September. This forthcoming rate decision will coincide with updated economic projections from the Federal Open Market Committee (FOMC). Fed Chair Jerome Powell is set to hold a press conference following the announcement at 2:30 pm ET. In the bond market, the US two-year yield dipped 2.4 basis points to 4.22% intraday, while the 10-year yield remained relatively unchanged at 4.39%. In other economic developments, mortgage applications in the US saw their first decline in five weeks, attributed to rising rates across various loan types, as reported by the Mortgage Bankers Association. West Texas Intermediate crude oil recorded a 1.2% gain, trading at $70.90 a barrel intraday. Turning to corporate news, Jabil (JBL) shares soared by 9.7%, marking the largest increase on the S&P 500 after the manufacturing solutions provider disclosed smaller-than-anticipated declines in its fiscal first-quarter results and improved its 2025 outlook. Conversely, General Mills (GIS) revised down its full-year earnings forecast due to increased investments aimed at enhancing volume and market share trends.
Consequently, shares of the packaged foods maker fell by 3.4%, ranking it among the poorest performers on the S&P 500. Toro (TTC) issued a fiscal 2025 outlook that underperformed analysts' estimates, with its fourth-quarter sales falling short of expectations while earnings were in line with market projections, leading to a 3.5% drop in its stock. In upcoming reports, Micron Technology (MU) and Lennar (LEN) are on the docket to announce their results following Wednesday's market closure. In precious metals, gold prices decreased by 0.4% to $2,652.40 per troy ounce, while silver saw a 0.6% decline, settling at $30.75 per ounce..