Stocks slipped on Tuesday as most market attention turned towards the Federal Reserve's upcoming policy decision on Wednesday as major averages trade around record highs.
The Dow Jones Industrial Average
The Federal Reserve began its two-day policy setting meeting on Tuesday, and is expected to issue its first interest rate cut since December at its concluding decision on Wednesday -- investors are currently pricing in a 100% chance that policymakers will the central bank's benchmark overnight borrowing rate by at least a quarter point, according to CME Group's FedWatch tool.
Market participants will also closely watch remarks from Fed Chair Jerome Powell following the decision on Wednesday for more insights on the central bank's outlook for the economy. Investors will also monitor whether or not voting members of will move to issue further interest rate cuts later this year.
On the economic front, U.S. retail sales rose at a faster-than-expected clip in August, as consumer demand remains strong despite a weakening labor market. Headline sales rose 0.6% for the month, matching July's upwardly revised level and coming in at double the rate expected by economists polled by Dow Jones. On an annual basis, sales rose by 5%.
Excluding auto sales, the month's sales rose 0.7%, coming in ahead of July's 0.4% print.
In the news, Novo Nordisk
An early analysis of the company's phase 3 REDEFINE 1 trial showed that Cagrilintide helped patients reduce their weight by 11.8% on average after 68 weeks, compared to the 2.3% seen in the placebo group, Novo said.
For Wednesday, all eyes will be on the central bank's interest rate decision in the afternoon, with some attention being paid to fresh housing market data on single-family starts and building permits for August in the morning.
