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US markets end mostly in red ahead of Fed meeting

30 Jul 2019 Evaluate

The US markets ended mostly in red on Monday as traders looked ahead to the Fed announcement, with the central bank widely expected to cut rates by at least 25 basis points. The Fed decision will be followed by a key report on employment that could also offer further guidance on the state of the labor market and the domestic economy. The US economy is experiencing its longest expansion in history, but the Fed is expected to cut rates in a proactive move aimed at offsetting the negative effects of the US-China trade war. President Donald Trump has repeatedly urged the Fed to lower rates. Assuming the Fed cuts rates as expected, traders are likely to pay close attention to the accompanying statement for clues about the potential for future rate cuts.

Besides, face-to-face trade talks between China and US officials are set to resume Tuesday in Shanghai, marking the first such meeting on tariffs since President Donald Trump and China’s President Xi Jinping met on the sidelines of the Group of 20 gathering in Osaka, Japan, in June. Investors have been watching for signs of progress toward a trade deal, but expectations for a breakthrough are low, as there have been few indications that either side is willing to back away from demands that derailed a previous round of negotiations in May.

Nasdaq declined 36.88 points or 0.44 percent to 8293.33 and S&P 500 was down by 4.89 points or 0.16 percent to 3020.97, while Dow Jones Industrial Average gained 28.90 points or 0.11 percent to 27221.35.

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