U.S. Stocks Edge Lower as Markets Await Fed Speeches
U.S. stocks slipped slightly on Monday, consolidating after last week’s rally to record highs driven by the Federal Reserve’s interest rate cut. Investors are now turning their attention to a busy schedule of Fed policymakers’ speeches.
At 09:33 ET (13:33 GMT), the Dow Jones Industrial Average dropped 165 points (0.4%), the S&P 500 lost 10 points (0.2%), and the Nasdaq Composite slipped 18 points (0.1%).
Both the S&P 500 and Nasdaq logged a third consecutive week of gains last week, boosted by the Fed’s decision to cut rates by 25 basis points and signal further reductions may be coming.
Fed in Focus and Inflation Data Ahead
Markets are pricing in two more quarter-point cuts by year-end, according to the CME FedWatch Tool. Investors will closely follow remarks from Fed officials, including Chair Jerome Powell’s speech on Tuesday, for more clues on policy direction.
Key U.S. economic data this week includes PMI surveys for September, a final reading of Q2 GDP, and the crucial PCE price index—the Fed’s preferred inflation measure. Core PCE inflation is expected to remain above the 2% target, with markets watching closely for any impact from trade tariffs.
Goldman Sachs and RBC Raise Market Forecasts
Goldman Sachs lifted its S&P 500 targets, now projecting 6,800 by year-end, 7,000 in six months, and 7,200 within 12 months. The bank expects earnings growth to be the primary driver of further gains. RBC Capital also struck a bullish tone, suggesting the S&P 500 could surpass 7,100 in the second half of 2026 if historical trends following Fed rate cuts hold.
Tech Earnings in Spotlight
Micron Technology (MU) will report earnings Tuesday after the close, with upbeat sentiment surrounding its results amid strong demand for AI-related chips. Later this week, Jabil Circuit (JBL) and Accenture (ACN) will release results, with analysts watching closely for AI’s impact on consulting services.
Visa Fee Shock for Tech Firms
The Trump administration announced a $100,000 annual fee for H-1B visas, sparking concerns at companies such as Microsoft, Alphabet, and Goldman Sachs, which rely on skilled foreign talent. Several firms have advised employees to remain in the U.S.
Corporate Movers
- Kenvue (KVUE) shares dropped after reports suggested Tylenol use during pregnancy may be linked to autism.
- Fox (FOX) rose after President Donald Trump said Rupert and Lachlan Murdoch may play a role in saving TikTok’s U.S. operations.
- Snap (SNAP) surged after confirming plans to launch consumer-ready Spectacles in 2026.
Commodities Update
Gold prices hit a record high, with spot gold rising 1% to $3,723.29/oz and futures climbing 1.4% to $3,757.93/oz. Lower interest rates are supporting demand for bullion.
Meanwhile, oil prices retreated, with Brent crude down 1% to $65.02 a barrel and WTI crude falling 1.1% to $61.71. Middle East tensions and fresh EU sanctions against Russia added to market volatility.
