S&P 500 Retreats from Record High as Fed Pivot Unnerves Investors

The S&P 500 concluded a choppy trading session with modest losses after briefly touching a new intraday record. The benchmark index reached a high of 6,619 points before a wave of profit-taking pushed it down to close at 6,600.35, a decline of 6.41 points from its previous close of 6,606.76. Investor caution prevailed following the first interest rate cut by the U.S. Federal Reserve since December.

In a widely anticipated but nonetheless pivotal move, the Federal Open Market Committee (FOMC) reduced the federal funds rate to a target range of 4.00% to 4.25%. While the 25-basis-point cut was fully priced in by markets, the central bank’s ambiguous forward guidance on the path of future rate reductions created uncertainty. The CBOE Volatility Index... Read more...