The U.S. Federal Reserve will meet next week to discuss monetary policy and decide whether it will hike rates for the first time since December 2015.
With the Fed in focus, Money Morning Capital Wave Strategist Shah Gilani has correctly predicted that volatility is roaring back in September. Check out what he has to say, right here.
Let's look at the final numbers on Tuesday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 18,067.16; -257.91; -1.41%
S&P 500: 2,127.02; -32.02; -1.48%
Nasdaq: 5,155.25; -56.63; -1.09%
Here's a look at today's most important market events and stocks, plus a preview of Wednesday's economic calendar.
The Dow Jones fell more than 250 points on Tuesday, while all 10 primary S&P 500 sectors were in the red. The sell-off was fueled by a sharp downturn in financial stocks as the odds of a rate hike fell again. According to CME FedWatch, the odds of a September rate hike now sit at just 15%. That hammered shares of banking stocks. Shares of Goldman Sachs Group Inc. (NYSE: GS) fell more than 2.3%, while shares of Morgan Stanley (NYSE: MS) dropped more than 2.5%.
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Investors are still speculating on the timing of the next interest rate hike after Federal Reserve Governor Lael Brainard said Monday that the central bank should keep monetary policy loose despite improving signs in the U.S. economy. Here's when we expect the next rate hike.
Oil prices were plunging this afternoon after a troubling report from the International Energy Agency (IEA). The global energy watchdog projected a sharp decline in international demand in the year ahead. The IEA says it anticipates oversupply in the market the first six months of 2017. That cuts into previous forecasts and expectations that anticipated greater balance in the markets toward the end of this year.
The WTI crude oil price today fell more than 3%.
Meanwhile, the Brent crude oil price fell 2.6%.
The silver lining is that today's report could place greater pressure on OPEC and Russia to cooperate on supporting oil prices when the global oil cartel meets this month to discuss its production targets.
But the big news today was the health of Democratic presidential candidate Hillary Clinton. On Monday, the political and financial media were asking, "Will Hillary Clinton drop out of the presidential race?" Clinton was recently diagnosed with pneumonia and appeared to collapse during a 9/11 memorial ceremony in New York City over the weekend. According to reports, Democrats are nervous about Clinton's health, prompting speculation about the future of her candidacy. Here's the latest on Clinton's health scare and what to expect during the 2016 election.
Up Next: How Small Investors Can Take on Wall Street... and Win
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.