US equities end lower as investors wait for Fed interest rate decision

WALL STREET'S main indexes closed lower on Monday, with most S&P 500 industry sectors in the red, while Treasury yields gained as investors waited nervously for the US Federal Reserve monetary policy update due in two days.

- 

Hopes for a December rate cut were solidified after last week’s datathat showed consumer spending increased moderately toward the end of the third quarter. However, investors are still waiting for clues about future policy moves from what is expected to be the most divided Fed in years.

Traders are now pricing in a roughly 89% chance of a 25-basis-point rate cut on Wednesday according to the CME’s FedWatch Tool.

Meanwhile, higher yields on US Treasury bonds also put some pressure on equities. The US 10-year Treasury yield rose soon after a powerful earthquake struck off the coast of Japan before US stock trading had opened.

The Dow Jones Industrial Average fell 215.67 points, or 0.45%, to 47,739.32, the S&P 500 lost 23.89 points, or 0.35%, to 6,846.51 and the Nasdaq Composite lost 32.22 points, or 0.14%, to 23,545.90.