US stocks ticked down on Tuesday morning as investors braced for the Federal Reserve’s interest rate decision on Wednesday and monitored the fallout from Anthropic CEO Dario Amodei’s essay on AI safety fears.
The tech-heavy Nasdaq Composite and S&P 500 both dipped below the flatline by less than 0.2%. The Dow Jones Industrial Average was down 0.6% after a Monday’s AI-driven losses. Oil prices ticked back up, with Brent crude and WTI crude changing hands at $102 and $103 per barrel, respectively. Prices have remained elevated since Saudi Arabia shuttered its East-West pipeline and the Iranian-backed Houthis launched fresh attacks in the Middle East.
Bond yields have also shot up as investors await the next Fed policy decision. Overnight, the 10-year Treasury yield briefly rose above 5%, its highest intraday level since 2007. While the 10-year yield ultimately moved lower again, passing that threshold underscored rising borrowing costs amid concerns about government spending and inflation.
The Federal Open Market Committee is scheduled to begin its September meeting on Tuesday with traders overwhelmingly expecting a rate hike. The release of the so-called dot-plot, along with Fed Chairman Kevin Warsh’s press conference, could offer investors clues about the prevailing winds of the Fed’s monetary policy.
Yahoo Finance
