Stocks – S&P Pulls Back as Investors Take Some Profits Ahead of Fed

Investing.com – The big stock market rally lost some steam Tuesday as four days of sizable gains produced the inevitable profit-taking.

Technology shares, especially giants like Apple (NASDAQ:), Google parent Alphabet (NASDAQ:) and Microsoft (NASDAQ:), led the pullback.

The hit a new intraday high of 3,047.96 early in the session but pulled back to a 0.08% loss.

The dropped a modest 0.07%. The slid 0.59% and the index fell 0.78%.

Alphabet’s earnings miss on Monday was the biggest reason for the tech pullback.

But it looked as if traders were surprised on a report that the phase one U.S.-China Trade Deal might not be ready when President Donald Trump and President Xi Jinping meet next month in Chile.

Part of the malaise also was the inevitable uncertainty of a Federal Reserve rate decision due Wednesday at 2 PM ET (18:00 GMT). Wall Street believes a rate cut is coming. Investing.com’s puts the odds of a quarter-point cut to at 98.3%.

There was some excitement on a Wall Street Journal report that Fiat Chrysler Automobiles (NYSE:) is in merger talks with French automaker Peugeot (OTC:). Fiat Chrysler was up about 7.5%.

Gold and oil prices were lower. Interest rates dipped lower with the Treasury yield dropping to 1.837%, down from Monday’s 1.853%.

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