How are US equities performing ahead of the Fed's decision?

[Dan Smith]

[Sam Rondon]

Stocks performed differently yesterday, with the Dow moving slightly higher and the S&P 500 dropping lower. On 26th July, the S&P 500 (SPX) recorded a record high, as well as the tech-heavy Nasdaq Composite (COMP). Today, however, the S&P tumbled 0.2%, and the Nasdaq fell 0.4%, while only the Dow (INDU) ended 0.1% higher at 29 points. The Federal Reserve meeting will be the top-priority event this week for investors, as the central bank will make its decision regarding interest rate cuts on Wednesday at 2pm ET. If it happens, it will be the first-rate cut in a decade. Expectations of a rate cut have been fully priced in for a while now, with the odds of a quarter-percentage-point cut being at 76%, according to the CME's FedWatch tool. It will be a busy week for investors, with the trade talks between the US and China happening today and tomorrow, and the long-awaited decision from the Fed.