Market conditions deteriorated early as optimism over easing Middle East tensions evaporated, leading to a drop in major stock indices, although small-cap stocks like the Russell 2000 showed strength. The Federal Open Market Committee is meeting to discuss interest rates, with expectations of them remaining steady despite calls for cuts. Investors anticipate comments from Fed Chairman Jerome Powell that could influence market direction amid rising volatility, while key stocks, particularly Nvidia, are experiencing fluctuating valuations as analysts adjust their targets.
The market’s optimism for an easing of Middle East tensions faded overnight, sending stocks lower early on as conditions for a deal took a turn for the worse.
Today marks the kickoff of the Federal Open Market Committee's (FOMC) two-day meeting, where the fate of interest rates will be decided.
While major stock averages, including the SPDR S&P 500 ETF, are down, small-cap stocks are defying the broader downtrend, highlighted by a 1.1% rise in the Russell 2000 index.
Market participants are awaiting signals from Fed Chairman Jerome Powell on the future direction of the economy and any potential headwinds he might see.
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