Oracle in the spotlight, the Fed at the center of expectations, and consumers at the center of the story

[Ben Graham]

Wall Street Ends in the Red

U.S. stock markets closed lower on Tuesday, with the three major Wall Street indexes finishing the session in decline. Investors adopted a cautious stance ahead of the Federal Reserve's much-anticipated interest rate decision.

Rate Cut Expectations

Most market participants continue to bet that the Fed will trim its key rate by 25 basis points. The move is seen as a response to mounting signs of weakness in the U.S. labor market, highlighted by a series of recent economic reports.

Political Moves Overlooked

Political developments failed to shift market sentiment. The Senate confirmed White House economic adviser Steven Miran to the Federal Reserve Board, while an appeals court rejected former President Donald Trump's attempt to dismiss Fed Governor Lisa Cook. Both events were largely ignored by traders.

Retail Sales and Market Volatility

Government data showed that U.S. retail sales in August rose more strongly than economists had forecast. Still, the upbeat consumer spending numbers did little to shake expectations of a rate cut. Meanwhile, the CBOE Volatility Index climbed to 16.04, its highest level in more than a week.

Pressure from Market Giants

Blue-chip stocks weighed on the indexes. Shares of UnitedHealth Group dropped 2.3 percent, while Nvidia slid 1.6 percent. The latter decline followed analyst reports pointing to weaker-than-expected demand in China for Nvidia's latest AI chip.

U.S. Indexes Break Records

On Monday, Wall Street once again set fresh milestones. The S&P 500 and Nasdaq closed at all-time highs, extending their streak of intraday records across several sessions. Despite September's reputation as a tough month for equities, all three major indexes have posted solid gains since the beginning of the year.

Webtoon Soars on Disney Partnership

Shares of Webtoon Entertainment surged nearly 39 percent after the company struck a deal with Disney. The collaboration involves launching a digital comics platform featuring content from Disney's vast portfolio, including the Marvel universe and Star Wars.

Oracle Gains on TikTok News

Oracle stock advanced 1.5 percent after Donald Trump announced that the United States and China had reached an agreement allowing TikTok to remain operational in the U.S. Market enthusiasm was further boosted by reports that Oracle is part of an investor consortium backing the arrangement.

European Markets Regain Ground

In Europe, stocks opened slightly higher on Wednesday, recovering from losses in the previous session. By early morning GMT, the STOXX 600 index was up 0.1 percent at 551.56 points, with tech companies leading the way.

Tech Sector Leads the Rally

SAP and Prosus were among the strongest performers, each rising about 2 percent, reinforcing the rebound of the broader technology sector.

Focus on the Federal Reserve

Global investors are now turning their attention to the conclusion of the Federal Reserve's two-day policy meeting. The outcome of the Fed's deliberations is expected to play a decisive role in shaping market sentiment.

PostNL Jumps on Strategic Shift

Shares of PostNL surged by more than seven percent after the company unveiled its new roadmap during Capital Markets Day. Starting in January 2026, the parcel delivery division will be split into two separate businesses, one focused on e-commerce and the other on platform services.

Novo Nordisk Upgraded

Pharmaceutical giant Novo Nordisk saw its stock rise nearly two percent. The advance came after brokerage firm Berenberg upgraded its rating on the Danish drugmaker from Hold to Buy, boosting investor confidence in the company's prospects.

The material has been provided by InstaForex Company - www.instaforex.com