New York's Three Major Indexes Open Mixed Ahead of September FOMC
The three major stock indexes on Wall Street opened mixed on the 16th (local time), a day before the September Federal Open Market Committee (FOMC) meeting that will determine the direction of U.S. monetary policy. As of 9:51 a.m. that morning, the Dow Jones Industrial Average was down 75.10 points (0.14%) from the previous session at 52,018.01. In contrast, the Standard & Poor's (S&P) 500 index was up 25.89 points (0.34%) at 7,611.62, and the Nasdaq Composite was up 181.24 points (0.70%) at 26,162.82.
The market's focus is on interest rates. According to CME FedWatch, the federal funds rate (FFR) futures market was pricing in a 92.7% probability that the U.S. Federal Reserve will raise the benchmark rate by 25 basis points at its September meeting. Accordingly, market participants are keenly watching Fed Chair Kevin Warsh's press conference for remarks on rates and inflation. Brent Wilsey, chief investment officer (CIO) at Wilsey Asset Management, said, "If the Fed holds rates at this FOMC, it could impact the stock market," adding that "it could also damage the Fed's credibility and reawaken concerns that the central bank is succumbing to political pressure aiming for a rate freeze."
By sector, real estate and telecommunications gained ground while energy and financials declined. International oil prices fell on news that Aramco had offered Asian long-term contract buyers the option to take crude oil deliveries via ship-to-ship transfers offshore near Oman's Port of Duqm, sending energy stock Exxon Mobil down 1.92%. At the same time, the front-month October 2026-delivery West Texas Intermediate (WTI) crude was trading at $103.54 per barrel, down 2.16% from the previous session.
Intel shares jumped 3.98% after reports emerged that the company was negotiating with SK Hynix to produce memory chips in the United States. Intel declined to comment on the report. SK Hynix said, "We are reviewing various options, including building additional production facilities, to strengthen the competitiveness of our memory business," while adding that "no specific matters have been decided at this stage."
Travel stocks moved in the opposite direction. Expedia shares fell 2.01% after Morgan Stanley downgraded its investment rating on Expedia to 'underweight,' citing a likely deterioration in consumer conditions.
European markets rose across the board, with the Euro Stoxx 50 index trading up 0.39% at 6,261.02. Britain's FTSE 100 and France's CAC 40 gained 0.56% and 0.50%, respectively, while Germany's DAX also rose 0.34%.
