Wall Street is jittery hours before the highly anticipated Federal Open Market Committee (FOMC) meeting, with all major indices posting modest losses by midday in New York. While a Federal Reserve rate cut is considered a done deal, the market remains divided on the magnitude of the cut.
Current implied probabilities show a 60% chance of a 50-basis-point reduction, while a smaller 25-basis-point cut has lately gained traction, rising to 40% odds, as per CME FedWatch.
The growing expectation of a smaller cut has pushed Treasury yields higher across the curve, reflecting a shift in market sentiment.
Amid this uncertainty, the CBOE Volatility Index (VIX), often seen as the market's fear gauge, spiked 8%, signaling heightened investor anxiety.
The U.S. dollar steadied, recovering from overnight losses. Commodities retreated, with oil prices down 0.9%, despite a fresh escalation of tensions in the Middle East, and silver slipping 1%. Gold remained flat.
In the cryptocurrency market, Bitcoin (CRYPTO: BTC) declined 1.5%, dipping below the $60,000 mark after a 3.6% rally on Tuesday.
Wednesday's Performance In Major U.S. Indices, ETFs
| Major Indices | Price | 1-day chg % |
| S&P 500 | 5,622.28 | -0.2% |
| Dow Jones | 41,482.17 | -0.3% |
| Nasdaq 100 | 19,369.89 | -0.3% |
| Russell 2000 | 2,201.42 | -0.5% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.3% lower to $561.44.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) fell 0.3% to $416.11.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) fell 0.4% to $471.53.
- The iShares Russell 2000 ETF (NYSE:IWM) eased 0.5% to $218.40.
- The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 0.2%. The Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 0.8%.
Wednesday's Stock Movers
- ResMed Inc. (NYSE:RMD) fell over 5% after Wolfe Research cut the stock rating from 'Peer Perform' to 'Underperform.'
- General Motors Co.(NYSE:GM) shares surged over 2% on Wednesday following the announcement that its electric vehicle customers will soon be able to access Tesla Inc. (NASDAQ:TSLA)'s Supercharger network using a GM-approved adapter.
- 20 S&P 500 Stocks That Move The Most When The Fed Starts Cutting Interest Rates
Image created using artificial intelligence via Midjourney.