Newscasts - S&P 500 ends slightly down as investors await Fed rate decision

Autozone

09/12/2025 23:48

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Source: 'Reuters - Business videos'

Description: The S&P 500 ended Tuesday's session slightly lower as investors anticipated that the Federal Reserve would take a hawkish tone even if it cuts interest rates this week, while JPMorgan was the heaviest drag on the benchmark index after the biggest U.S. bank warned of hefty expenses for 2026. Lisa Bernhard has more.

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Video Transcript:

Wall Street's main indexes ended mixed and somewhat muted on Tuesday, with the Dow dropping more than a 0.3%, the S&P 500 edging slightly into the red, and the NASDAQ ticking up marginally. The Federal Reserve kicked off its two-day policy meeting on Tuesday, with traders widely expecting a 0.25-percentage-point rate cut at its conclusion. While inflation hovers above the Fed's annual target of 2%, policymakers remain more concern about the health of the labor market. But Andrzej Skiba, Head of US Fixed Income at RBC Global Asset Management, notes that recent data suggests the labor market may be relatively stable.

We also got actually some recent positive data points, like the JOLTS number indicating an increase in the number of job openings in the US. And that is the reason why we're erring on the side of the Federal Reserve cutting rates this time. However, with messaging that suggests that they might be done for a while, and they want to assess incoming data early in 2026 to determine whether another cut is necessary or not.

Stocks on the move Tuesday included JPMorgan Chase, which shed more than 4.5% for its biggest one-day percentage drop since early April 4. The bank said it expects expenses to climb to about $105 billion in 2026, driven largely by growth and volume-related costs. Shares of Campbell's shed more than 5% after the packaged food maker said it selectively raised prices to counter higher costs. And AutoZone's shares lost more than 7% after the retailer missed quarterly sales and profit estimates.