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U.S. stocks are falling as investors look ahead to Fed meeting

Published 12/06/2022, 09:45 AM
Updated 12/06/2022, 10:20 AM
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By Liz Moyer

Investing.com -- U.S. stocks were trading lower as investors pause before next week’s interest rate decision by the Federal Reserve.

At 10:17 ET (15:17 GMT), the Dow Jones Industrial Average was down 155 points or 0.5%, while the S&P 500 was down 0.9% and the NASDAQ Composite was down 1.4%.

On Monday, stocks sold off on concerns the Fed will continue with its rate-hiking path for longer. It is widely expected to raise rates again next week, but perhaps by a smaller half-percentage point increment than at each of its four previous meetings.

The fear was fueled by better-than-expected data on the services industry, adding to a better-than-expected report on jobs last Friday. Stronger data could give the Fed reason to continue on its rate path for longer.

Also hanging in the balance: the results of a runoff election today in Georgia, a key battleground state. The vote could determine the balance in the Senate, where Democrats hold a razor-thin majority.

A win by incumbent Democrat Sen. Raphael Warnock could give the party 51 seats in the Senate, while a victory by Republican candidate and former football star Herschel Walker could give the GOP power to block initiatives.

GitLab Inc (NASDAQ:GTLB) shares are up 10.5% after it beat expectations on sales and reported a smaller-than-expected loss for the quarter. Signet Jewelers Ltd (NYSE:SIG) shares jumped 19.4% after it reported profit per share that was more than double expectations and met expectations with a 7.6% drop in same-store sales.

Oil was trading lower. Crude Oil WTI Futures were down 1.2% to $76.03 a barrel, while Brent Oil Futures crude is down 1.5% to $81.44 a barrel. Gold Futures were up 0.2% to $1785.

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