Stock Market Today: S&P 500 Declines as Stocks Take a Breather

The S&P 500 experienced a decline on Wednesday as investors paused to assess the recent market rally and awaited important economic indicators, including upcoming inflation data.

By the end of the trading day at 4:00 p.m. ET, the Dow Jones Industrial Average was down 293 points, or 0.7%. The S&P 500 slipped by 0.2%, while the NASDAQ Composite saw a slight increase of 0.1%.

Both the S&P 500 and the Dow Jones hit record highs on Tuesday, continuing the positive sentiment that followed last week’s substantial interest rate cut by the Federal Reserve.

### Focus on Powell’s Address and PCE Data

Several Federal Reserve officials are slated to speak in the days ahead, with Chair Jerome Powell scheduled for Thursday. Their remarks are expected to provide insights into the Fed’s intentions regarding future interest rate reductions.

Last week, the Fed reduced rates by 50 basis points, initiating an easing cycle that analysts believe could see rates lowered by a total of 125 basis points over the year.

The upcoming PCE price index data, which serves as the Fed’s key inflation measure, is set for release on Friday and may influence the central bank’s approach to interest rates.

Additionally, recent data showed that building permits in August grew less than anticipated, raising concerns about the state of the housing market.

### Gains for Nvidia and Meta

Nvidia, a leader in artificial intelligence, saw its stock rise by 2%, continuing its upward momentum from Tuesday. This surge followed reports that CEO Jensen Huang had ceased selling shares after disposing of over $700 million worth under a trading plan. Huang’s previous share sales had caused some uncertainty among investors, particularly after the company’s quarterly results fell short of lofty expectations and highlighted delays in advanced AI chip production.

Meta Platforms Inc experienced a 0.9% increase after launching its first augmented reality glasses at its annual connect event, along with a series of updates aimed at enhancing AI features across its major platforms, including Facebook and Instagram.

### Flutter Entertainment Gains; Stitch Fix Declines

Flutter Entertainment surged by 5% after its parent company FanDuel announced plans for a stock buyback of up to $5 billion and shared ambitious long-term growth projections aiming to double profits by 2027.

Conversely, Stitch Fix faced a significant drop of 39% after providing guidance that fell short of expectations, projecting a return to revenue growth by 2026. This outlook overshadowed a narrower-than-expected loss in its fourth quarter.

(Note: This article was contributed to by Peter Nurse and Ambar Warrick.)