Market Update

Investing.com — The S&P 500 fell Wednesday, as investors paused on the recent rally and awaited key inflation data later this week.

At 4:00 p.m. ET (2000 GMT), the Dow Jones Industrial Average fell 293 points, or 0.7%. The S&P 500 declined by 0.2%, while the NASDAQ Composite was up 0.1%.

The S&P 500 and the DJIA hit record highs on Tuesday, continuing optimism generated by last week’s significant interest rate cut by the Fed.

Powell’s Address and PCE Data in Focus

Several Fed officials are set to speak in the coming days, most notably Chair Jerome Powell on Thursday. They are expected to provide more insights on the bank’s plans for cutting interest rates.

The Fed cut rates by 50 basis points last week and announced an easing cycle, which analysts predict could lower rates by a total of 125 basis points this year.

The PCE price index data, the Fed’s preferred inflation gauge, is due on Friday, which is likely to influence the central bank’s decisions on interest rates.

Additionally, building permits showed growth less than expected in August, raising concerns about the housing market.

Nvidia Continues Climb; Meta Shines

Artificial intelligence giant Nvidia (NASDAQ: NVDA) saw its stock rise 2%, continuing Tuesday’s positive session following reports that CEO Jensen Huang has completed the sale of over $700 million worth of Nvidia shares under a trading plan.

Huang’s share sales had previously shaken confidence in the company, especially after quarterly results fell short of high expectations and announced delays in its advanced AI chips.

Meta Platforms Inc (NASDAQ: META) climbed 0.9% after launching its first augmented reality glasses at its annual connect event and introduced several updates amid a significant push to integrate AI into its platforms like Facebook and Instagram.

Flutter Entertainment Jumps on Buyback Plans; Stitch Fix Slumps on Weaker Outlook

Flutter Entertainment PLC (NYSE: FLUT) surged by 5% after its parent company FanDuel announced a plan to buy back up to $5 billion, revealing long-term growth forecasts aiming to double profits by 2027.

Conversely, Stitch Fix (NASDAQ: SFIX) fell by 39% after providing weaker-than-expected guidance, forecasting a return to revenue growth by 2026, which overshadowed a narrower loss in Q4.

(Peter Nurse, Ambar Warrick contributed to this article.)