ALBAWABA - US markets closed with collective losses on Tuesday as two-year Treasury bond yields reached their highest level in over two months, with investors eagerly awaiting the results of the Federal Reserve's meeting scheduled for Wednesday.
The Federal Reserve is set to release its economic projections for interest rates, inflation, and economic growth, amid investor concerns about the possibility of interest rate hikes in 2024 and a longer period of elevated rates.
Economically, the annual inflation rate in Canada, driven by gasoline prices, and a larger-than-expected decline in US housing construction, contributed to investor uncertainty.
Performance of the key US indices:
The Dow Jones index declined by 0.31%, equivalent to 106 points, in Tuesday's session, closing at its lowest level in a week.
The Nasdaq Composite index fell by 0.23%, marking its lowest closing in three weeks.
The S&P 500 index also dropped by approximately 0.2%, with 9 of the 11 major sectors experiencing declines, led by energy and consumer discretionary sectors.
Walt Disney Stock:
Walt Disney's stock fell by 3.6% in Tuesday's session, recording its largest daily loss in three weeks, as the company announced plans to double its capital spending on its theme park business over the next ten years, causing the company to lose approximately $6 billion in market capitalization in a single day.
Starbucks Stock:
Starbucks' stock declined by approximately 1.5% in Tuesday's session, closing at its lowest level in 10 months after TD Cowen downgraded its rating to "underperform."
