BUSINESS US stocks close mixed ahead of Fed's decision on rate cut

BUSINESS

US stocks close mixed ahead of Fed's decision on rate cut

Xinhua

06:06, July 30, 2019

NYSE.jpg

Electronic screens show trading information at the New York Stock Exchange in New York City on May 31, 2019. (Photo: Xinhua)

NEW YORK (Xinhua) -- US stocks closed mixed on Monday, as investors looked ahead to a key policy meeting of the US Federal Reserve by the end of the month.

The Dow Jones Industrial Average rose 28.90 points, or 0.11 percent, to 27,221.35. The S&P 500 declined 4.89 points, or 0.16 percent, to 3,020.97. The Nasdaq Composite Index dropped 36.88 points, or 0.44 percent, to 8,293.33.

The majority of the 30 blue-chip stocks in the Dow extended gains around the closing bell, with shares of Intel and Johnson & Johnson rising nearly 1.8 percent and around 1.75 percent respectively, leading the gainers.

Seven of the 11 primary S&P 500 sectors traded lower around market close, with the financials sector down nearly 0.8 percent, leading the losers.

Shares of Genomic Health surged over 6.4 percent, as U.S. cancer diagnostics company Exact Sciences will buy the U.S. genetic research firm in a cash and stock deal for 2.8 billion U.S. dollars, which aims to boost Exact Sciences' capability of testing cancer.

The Fed is scheduled to discuss its monetary policy in a meeting on July 30-31, and is expected to announce details on how it will adjust interest rates after the meeting on Wednesday afternoon.

Traders have priced in a 100 percent probability that the Fed will cut rates later, according to CME Group's FedWatch tool around market close.

More specifically, the probability to cut rate by 25 basis points stood at an overwhelming 76 percent, while market participants still held a chance of 24 percent for the Fed to cut rate by 50 basis points.

U.S. equities extended mild gains last week, as Wall Street pored through the mixed pictures of corporate earnings and economic data, including U.S. GDP growth for the second quarter. Enditem


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