S&P 500: 4,173.11,-31.20(-0.74%)
Dow 30: 32,945.24,+1.05(+0.00%)
Russell 2000: 1,941.72,-37.95(-1.92%)
“Stocks erased earlier gains to close mostly lower, with investors looking ahead to the Federal Reserve’s next monetary policy decision later this week amid an ongoing war in Ukraine and soaring inflation.
The Dow Jones Industrial Average erased earlier gains of as many as 451 points to end little changed by market close. The Nasdaq dropped 2%, and S&P 500 also turned negative as technology stocks came under renewed pressure. U.S. crude oil prices (CL=F) dipped below $103 per barrel to a two-week low, while the average price for gas at the pump held near a record above $4.30 per gallon across the U.S.
Meanwhile, Chinese stocks remained volatile as concerns over regulatory pressures and Beijing’s relationship with Russia rose further. According to reports over the weekend citing U.S. officials, Russia had asked for military support from China for the war in Ukraine. American depository receipts of major Chinese companies including Alibaba (BABA), Nio (NIO) and Baidu (BIDU) slid in intraday trading, building on steep year-to-date losses.
U.S. investors this week have set their sights on the Federal Reserve’s latest monetary policy decision due for release on Wednesday. Market participants are expecting the Fed to raise interest rates for the first time since 2018 as the central bank takes its first major step toward removing the monetary policy accommodation it had implemented over the course of the pandemic.
Ahead of this meeting, Fed Chair Jerome Powell already told Congress earlier this month that he would support a 25 basis point rate hike following the March meeting. Such a move would bring rates a step above their current near-zero levels and only just begin to address inflation already soaring at multi-decade highs. Still, many economists expect Fed officials to telegraph they remain open to discussing larger or greater numbers of rate hikes moving forward, especially if and when uncertainty around the geopolitical situation begins to ease.”
Stock market source: Yahoo Finance