Markets Steady Near Records as Traders Await Fed Rate Decision – US Market Wrap

Wall Street traders preparing for the Federal Reserve decision refrained from making large bets as they waited for clues on the path of interest rates that will shape the market outlook in the coming months.

A strong reading on retail sales did little to move trading, with equities losing some steam near all-time highs and bonds making small gains.

The value of retail purchases, not adjusted for inflation, rose 0.6%, following a similar increase in July. The control-group sales, which are used to calculate goods spending for GDP, rose 0.7%, indicating a healthy quarter.

While Fed officials remain focused on bringing inflation to their target, they are widely expected to cut interest rates to protect the labour market from further deterioration.

The S&P 500 stayed above 6,600. The Nasdaq 100 has halted its nine-day advance. Treasuries advanced following a strong sale of 20-year bonds.
The yield on two-year notes fell three basis points, to 3.51%. The dollar fell. The euro reached its highest since 2021.