Investors were in a jittery state of mind on Tuesday, with Halloween in the rear-view mirror but a Federal Reserve meeting and crucial jobs report on the horizon.
The Fed is widely expected to raise rates by another three-quarter of a percentage point on Wednesday. The key question for markets is whether it will signal any moderation of that pace in tightening in future meetings. Friday’s jobs report could also provide clarity on that front.
Investors didn’t seem inclined to make any big bets just ahead of those events. The Dow Jones Industrial Average slipped 80 points or 0.2% on Tuesday. The S&P 500 fell 0.4% and the Nasdaq dropped 0.9%.
There was some excitement in medical stocks after Johnson & Johnson agreed to acquire heart-device maker Abiomed Inc. in a $16.6 billion deal. Shares of Abiomed soared nearly 50%, in line with the premium offered by J&J. Pfizer gained 3.1% after posting a solid set of results, including higher guidance for Covid-19 vaccine sales, though Eli Lilly fell 2.6% after it cut revenue guidance.
Tech continued to be a weak spot. Amazon.com fell 5.5%, its market capitalization slipping below $1 trillion for the first time since April 2020. Google parent Alphabet declined 4.3%.
Source By: wsj