US stock indexes in red
- Main US indexes red; Nasdaq off most, down ~0.8%
- Healthcare weakest S&P 500 sector; Utilities lead gainers
- Euro STOXX 600 index off ~0.2%
- Dollar down; bitcoin dips; gold up >1.5%; crude up >3.5%
- US 10-Year Treasury yield edges up to ~4.36%
U.S. stock indexes retreat as Fed Meeting Begins and Pharma Tariff Concerns Resurface
U.S. stocks opened lower on Tuesday, with major indexes pulling back as investor sentiment took a hit from fresh trade concerns and lackluster corporate earnings. The retreat comes just a day after the S&P 500 ended its longest winning streak since 2004.
Late Monday, former President Donald Trump announced plans to unveil new pharmaceutical tariffs within the next two weeks—a move that has added more uncertainty to markets already rattled by months of tariff-related volatility.
Adding to the cautious mood, Ford Motor Co. suspended its full-year outlook on Monday. The automaker joins a growing list of companies that have withdrawn guidance amid ongoing trade tensions and economic unpredictability.
All of this sets the backdrop for the Federal Reserve’s two-day policy meeting, which begins today. According to the CME FedWatch Tool, markets overwhelmingly expect the Fed to hold interest rates steady, assigning a 97% probability to no change and just a 3% chance of a 25-basis-point rate cut. Still, markets are pricing in approximately 81 basis points in cumulative rate cuts by the end of the year.
In early trading, healthcare is the weakest-performing sector within the S&P 500. Only utilities and energy are trading in positive territory.
Beneath the surface, notable weakness is seen in transportation stocks, regional banks, and semiconductor shares. However, gold miners are bucking the trend, with the NYSE Arca Gold BUGS Index (.HUI) moving higher.
As for technicals, the S&P 500, currently hovering around 5,610, is approaching support near its 50-day moving average, which sits just under 5,570.