Markets dip ahead of key interest rate signals
U.S. stocks pulled back slightly on Tuesday, with the S&P 500 and Nasdaq retreating from record highs as the Federal Reserve began its two-day policy meeting. The Dow Jones Industrial Average also edged lower, reflecting cautious sentiment ahead of potential guidance on future interest rate decisions.
Warner Bros. Discovery leads losses in S&P 500
Warner Bros. Discovery (WBD) was the worst-performing stock in the S&P 500 after TD Cowen downgraded the stock to “hold” from “buy.” The firm expressed concern that recent gains linked to speculation about a potential sale to Paramount Skydance (PSKY) could quickly reverse if no deal is finalized.
Dave & Buster’s Entertainment (PLAY) shares also suffered a sharp decline after the company missed earnings and revenue expectations. Comparable store sales dropped, and management warned that inflation and tariffs could continue to pressure the business moving forward.
Mixed results in corporate earnings and updates
Rocket Lab (RKLB) fell after the aerospace company announced plans to raise $750 million through a stock sale, triggering investor concerns about dilution. In contrast, Novo Nordisk (NVO) gained following positive Phase 3 trial results for a new weight-loss drug that operates differently from its flagship GLP-1 inhibitor, Wegovy.
Steel Dynamics (STLD) also rose after delivering a stronger-than-expected outlook, citing improved performance across various business units.
Commodities up, crypto down
In commodities, oil and gold futures both climbed. Meanwhile, the yield on the U.S. 10-year Treasury note remained mostly flat. The dollar weakened against the euro, British pound, and Japanese yen. Most major cryptocurrencies posted declines on the day.
