Investing.com-- The S&P 500 fell Wednesday, as investors hit pause on the recent rally and awaited further catalysts including key inflation data later this week.
At 4:00 p.m. ET (2000 GMT), Dow Jones Industrial Average fell 293 points, or 0.7%, S&P 500 fell 0.2%, while NASDAQ Composite was up 0.1%.
The S&P 500 and the DJIA hit record highs on Tuesday, continuing the optimism generated by last week's bumper interest rate cut by the Fed.
Powell address, PCE data in focus
Several Fed officials are set to speak in the coming days -- most notably Chair Jerome Powell on Thursday -- and they are likely to offer up more cues on the bank’s plans to cut interest rates.
The Fed cut rates by 50 basis points last week and announced the start of an easing cycle, which analysts expect could bring rates lower by a total of 125 bps this year.
PCE price index data - the Fed’s preferred inflation gauge - is due on Friday, and is likely to factor into the central bank’s plans for interest rates.
On the economic calendar, building permits also grew by less than expected in August, data showed Wednesday, also raising concerns about the country's housing market.
Nvidia continues climb; Meta shines
Artificial intelligence major Nvidia (NASDAQ:NVDA) stock rose 2%, continuing Tuesday's positive session following reports that CEO Jensen Huang was done selling Nvidia shares after offloading more than $700 million worth of shares under a trading plan.
Huang’s share sales had rattled some confidence in the company, especially after its quarterly results missed some high expectations, and it flagged delays in its advanced AI chips.
Meta Platforms Inc (NASDAQ:META) climbed 0.9% after debuting its first augmented reality glasses at its annual connect event and unveiling a slew of updates as the tech giant makes a big push to integrate AI features into its various platforms including Facebook and Instagram.
Flutter Entertainment jumps on stock buyback plans; Stitch Fix slumps on weaker outlook.
Flutter Entertainment PLC (NYSE:FLUT) jumped 5% after parent company FanDuel said it plans to buyback up to $5 billion and unveiled long-term growth forecasts seeking to double profit by 2027.
Stitch Fix (NASDAQ:SFIX) plunged 39% after delivering weaker-than-expected guidance, forecasting to return to revenue growth by 2026. The outlook offset a narrower than expected loss in Q4.
(Peter Nurse, Ambar Warrick contributed to this article.)