Stocks Slip Ahead Of Fed Meeting, Chipmakers Suffer From China’s Threat, Bitcoin Spikes Above $107,000: What’s Driving Markets Tuesday?
By Benzinga
The stock market edged lower by midday Tuesday as investors treaded cautiously ahead of the Federal Reserve’s policy decision scheduled for Wednesday.
Although a rate cut appeared widely priced in—with Fed Funds futures assigning a 96% probability—investors are fully focused on the Fed’s forward guidance and Chair Jerome Powell‘s remarks, particularly in light of recent robust economic data.
November’s retail sales data showed an unexpected rebound, rising 0.7% month-over-month, surpassing expectations of 0.5%. On an annual basis, sales climbed 3.8%, the fastest pace since December 2023, driven by strong auto sales growth.
Semiconductor stocks led the downturn amid renewed geopolitical tensions following reports that China is broadening antitrust scrutiny on U.S. chipmakers’ acquisitions in recent years. Last week, Beijing launched an investigation into Nvidia Corp.’s (NASDAQ:NVDA) 2019 acquisition of Mellanox Technologies.
The iShares Semiconductor ETF (NYSE:SOXX) declined 1.5%, weighed down by sharp losses in major chip stocks. Broadcom Inc. (NASDAQ:AVGO) dropped over 5%, while Marvell Technology Inc. (NASDAQ:MRVL) plunged over 8%.
By midday, the major U.S. indices were in negative territory. The S&P 500 slipped 0.4%, the Dow Jones Industrial Average fell 0.6%, and the Nasdaq 100 declined 0.4%.
Both the U.S. dollar and Treasury yields remained steady, reflecting cautious positioning by institutional investors.
In commodities, gold dipped 0.3%, while natural gas and oil prices fell 2% and 1%, respectively, signaling continued weakness in the energy sector.
Cryptocurrencies continued to outperform. Bitcoin (CRYPTO: BTC) climbed 1.3% to surpass $107,000, reaching a market capitalization of $2.13 trillion. The total cryptocurrency market value rose to $3.68 trillion, a new record high.
Tuesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day Chg % |
| S&P 500 | 6,050.50 | -0.4% |
| Nasdaq 100 | 22,000.37 | -0.4% |
| Dow Jones | 43,443.08 | -0.6% |
| Russell 2000 | 2,345.01 | -0.7% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.4% to $604.65.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) eased 0.6% to $435.75.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) fell 0.4% to $536.21.
- The iShares Russell 2000 ETF (NYSE:IWM) dipped 1% to $232.10.
- The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, up by 0.2%; the Energy Select Sector SPDR Fund (NYSE:XLE) lagged for the second straight session, down 1.3%.
Tuesday’s Stock Movers
- Amer Sports Inc. (NYSE:AS) rallied 5.7% after UBS analysts raised the stock price target from $27 to $37.
- Amentum Holdings Inc. (NYSE:AMTM) tumbled by over 11% in reaction to its earnings reports, with the company highlighting pessimistic guidance for 2025.
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Photo: Shutterstock
