Stocks Balk at Record as Fed Bets ‘Up in the Air’: Markets Wrap
- September swaps show 55% chance of a half-point reduction
- US retail sales unexpectedly increase after upward revision
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Stocks drifted near all-time highs ahead of the Federal Reserve decision, with traders split on the size of an interest-rate cut.
The S&P 500 closed little changed after briefly crossing the threshold of a record amid an increase in US retail sales. Economically sensitive industries once again outperformed tech. Treasury yields edged up, with shorter maturities leading the move. The market-implied odds the Fed announces a 50-basis-point reduction on Wednesday were around 55%.