Wall Street closed mixed on Tuesday, pulled down by bank and healthcare stocks. While investors still expect a rate cut announcement from the Fed’s December meeting, they expect its tone to be hawkish. Treasury yields continued to rise, weighing on equities. Two of the three benchmark indexes finished in the red, while one finished in the green.
The Dow Jones Industrial Average (DJI) slid 0.4%, or 179.03 points, to close at 47,560.29. Nineteen components of the 30-stock index ended in negative territory, while 11 ended in the positive.
The tech-heavy Nasdaq Composite gained 30.58 points, or 0.1%, to close at 23,576.49.
The S&P 500 fell 6 points, or 0.1%, to close at 6,840.51. Five of the 11 broad sectors of the benchmark index closed in the red. The Health Select Sector SPDR (XLV), the Industrials Select Sector SPDR (XLI) and the Real Estate Select Sector SPDR (XLRE) receded 1%, 0.7% and 0.6% respectively, while the Energy Select Sector SPDR (XLE) advanced 0.7%.
The fear gauge CBOE Volatility Index (VIX) increased 1.6% to 16.93. A total of 14.5 billion shares were traded on Tuesday, lower than the last 20-session average of 17.34 billion. Advancers outnumbered decliners by a 1.14-to-1 ratio on the NYSE and by a 1.24-to-1 ratio on the Nasdaq.
On Tuesday, Dec. 9, market participants on Wall Street displayed mixed emotions as anticipation built around the Fed’s upcoming policy announcement. While markets broadly continued to price in the possibility of a rate cut at the December meeting, confidence in an immediate pivot remained fragile. Traders increasingly expected Chair Jerome Powell to strike a hawkish tone, emphasizing the need to stay vigilant against inflation even as key economic indicators show signs of cooling. This expectation kept volatility elevated across equities, with investors attempting to balance optimism over easing financial conditions against the risk of a more cautious Fed.
Throughout the session, Wall Street sentiment reflected this tension. Bond yields fluctuated as traders reassessed the likelihood of policy easing, and sectors sensitive to interest rates moved unevenly. The central concern was whether the Fed would signal confidence in inflation’s downward trajectory or maintain a defensive stance to ensure price stability. Despite hopes for relief, the market widely understood that any dovish shift would likely be gradual, keeping focus firmly on the tone and language of the December statement.Top of FormBottom of Form
