US markets end lower ahead of Fed Meeting

The US markets closed mostly lower on Friday as uncertainty about the outlook for monetary policy weighed on the markets ahead of next week’s Federal Reserve meeting. The Fed is expected to announce a further reduction in the pace of its asset purchases, although traders are likely to pay closer attention to any clues about the outlook for rates. Moreover, sales at U.S. retailers surged 0.6 percent in August, the fastest pace in four months, increasing speculation that the Fed will signal a move toward raising rates at its meeting next week. Separate data showed consumer confidence in the U.S. rose more than estimated. Sentiments also remained dampened after Russia threatened retaliation against a U.S. and European Union decision to stiffen sanctions, saying the move to expand penalties undermines the peace process in Ukraine.

The Nasdaq was down by 24.21 points or 0.53 percent to 4,567.60, the S&P 500 ended lower by 11.91 points or 0.60 percent to 1,985.54 and Dow Jones Industrial Average slid 61.49 points or 0.36 percent to 16,987.51.

The Indian ADRs closed mostly in the red on Friday; Infosys was down 0.48%, HDFC Bank was down by 0.36%, ICICI Bank was down 0.14% and Dr. Reddy’s Lab was down by 0.07%. On the other hand, Tata Motors was up by 0.08%.