U.S. indices dipped from the pressure in big tech markets and investors keep their focus on the FOMC response.

The Dow Jones dipped on Monday as it felt the pressure from tech, although it achieved its biggest monthly gain in decades as investors are focusing on the Fed decision later in the week.

The Dow dipped 0.3%, the Nasdaq fell 1% and the S&P 500 was down 0.7%. The Dow Jones had its best month since 1976.

Pressure in the Nasdaq from a 6% drop in Meta led the fall in tech, continuing from last week. Apple, Microsoft and Alphabet were down more than 1%.

Treasury yields balanced after the declines in the prior week as investors looked to the start of the Federal Reserve’s 2-day meeting on Tuesday. Expected to lift interest rates by 75bp for the fourth consecutive time. However, the primary focus is on what Mr Powell has to say, hopefully hinting that the FOMC will cut the hike to 50bp from 75bp.

The jump in U.S. oil output for August created some concerns across the oil markets in today’s trading session. Traders took this as a possible sign of a production trend which has caused crude prices to fall as the market is already on the edge.  U.S. jobs numbers release, impending rate increases and China’s Covid restrictions are the main factors weighing over the market.

London-traded Brent crude, global benchmark for oil, settled down almost 1% after last weeks gains of 3%. The New-York-traded West Texas Intermediate, benchmark for U.S. crude, settled down 1.6%.

Earnings:

• Stryker earnings fell short as the company reported an EPS of $2.12 compared with estimates of $2.23. Revenue came in in at $4.5 billion against the estimate of $4.47 billion. The company’s stock is down about 14.6% in the last 12 months.

(Sources: investing.com, reuters.com)