US market backs off in afternoon trading Stocks lost ground during afternoon trading Tuesday, as investors flashed uncertainty over the size of the Federal Reserve's expected rate cut, which is scheduled to be announced Wednesday, at the conclusion of the major policy meeting.
The Dow Jones Industrial Average (^DJI) moved down roughly 0.1%, coming off a record-high close for the blue-chip index. The S&P 500 (^GSPC) lost about 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) was just over the flatline.
Stocks are wavering as Wall Street keeps guessing at the odds of a 0.5% Fed rate cut, with just one day to go before officials reveal their monetary policy decision. The central bank's two-day meeting, which begins Tuesday, is prevailingly expected to bring the first easing in rates since early 2020. Even as the size of the rate cut remains to be seen, investors and market observers are also torn on how the first rate cut will be perceived by the market.