Oct 31 (Reuters) – The New York Stock Exchange ended lower on Monday for the final session of October, in which the Dow Jones recorded its largest percentage gain in 46 years, as investors focused on the US Federal Reserve (Fed) meeting on Tuesday and Wednesday.
The Dow Jones index fell 0.39%, or -128.85 points, to 32,732.95 points.
The broader Standard & Poor’s 500 lost 29.08 points, or 0.75% to 3,871.98 points.
The Nasdaq Composite fell 114.31 points (-1.03%) to 10,988.146.
The U.S. central bank is expected to raise interest rates by 75 basis points on Wednesday after its two-day meeting, but investors will be on the lookout for any signs that it may be looking at a deceleration in increases interest rates in the future.
Hopes that the Fed will end its aggressive policy of raising interest rates have boosted stocks in recent weeks, with the S&P 500 gaining almost 9% over the past two weeks. The Dow Jones achieved its biggest monthly percentage rise since January 1976 in October.
“We had a deep move in the market last week to the upside (..) so it certainly makes sense that we need to backtrack today,” Eric Diton, chairman and chief executive of The Wealth Alliance told The Wealth Alliance. Boca Raton, Florida.
“We’ll wait and see, and maybe the Fed meeting will give us some direction. November is a done deal; the 75bps are priced in. Their aim is not to surprise the markets” .
In stocks, Apple fell 1.54% as iPhone production could fall 30% next month at one of its largest factories in China.
Growth stocks such as Amazon.com and Google-owner Alphabet, which came under pressure amid rising rates, were also down 0.93% and 1.84%, respectively.
Almost all of the 11 sectors in the S&P 500 are down, led by technology and communication services, while energy rose ahead of US President Joe Biden’s statement on oil tanker profits on Monday.
(Written by Kate Entringer)