S&P 500, Dow end lower as investors await clues on Fed rates, data

The Dow Jones Industrial Average and S&P 500 closed lower on Wednesday, retreating from recent record highs fueled by China’s sweeping stimulus package, as investors awaited further economic indicators and signals on upcoming interest rate cuts

The three main indexes were set for monthly gains after the Federal Reserve’s rate cut on Sept. 18 boosted hopes of a soft landing. However, a weak consumer sentiment report on Tuesday raised concerns about the labor market health.

“What happened in commodities and basic materials, etc., was quite a reaction to … ‘hey, what if China can get growing again?’ And that kind of feeds into other areas, (and) it helps other economies,” said Tom Martin, senior portfolio manager at Globalt in Atlanta.

The long-term Treasury bond yield , rose on concerns that looser financial conditions could reignite inflation.

 

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