Wall Street’s main indexes fell on Monday, with most S&P 500 sectors declining and Treasury yields rising as investors awaited Wednesday’s Federal Reserve policy decision.
Traders are pricing in 89% probability of a 25-basis-point rate cut. While the cut is widely expected, markets will focus on the Fed’s statement for signals about 2026 rate policy.
The Fed will release its policy statement, updated economic projections, and Chair Jerome Powell will hold a press conference. Investors expect 2–4 additional cuts in 2026 unless economic data shifts significantly.
Treasury selling pushed the 30-year yield to a three-month high.
This week’s central bank decisions begin Tuesday with the Reserve Bank of Australia, followed by Canada, Brazil, and Switzerland, culminating in the Fed announcement on Wednesday.
The United States will allow Nvidia’s H200 processors, its second-best artificial intelligence chips, to be exported to China and collect a 25% fee on such sales.
Rising Japanese government bond yields sparked fears of a partial unwind of the yen carry trade, while a stronger dollar ahead of the Fed meeting kept foreign investors cautious. Nifty dropped over 200 points yesterday in a broad-based sell-off.
The rupee breached 90 per dollar as foreign portfolio investors remained net sellers in recent sessions, fueling volatility and profit-taking in Indian equities.
The broader market suffered sharper losses.
Market breadth remained weak for a seventh straight session. The Nifty Midcap 100 fell 1.83%, while the Nifty Small Cap 100 plunged 2.61%—its steepest single-day drop since April 7, 2025, and a six-month low.
By closing below its prior swing low of 25,986, Nifty confirmed a lower bottom following a lower top, reinforcing the short-term corrective structure. A decisive break below 25,891 would likely accelerate selling and expose support zones of the 50-day exponential moving average at 25,722.
Indian markets are poised to open subdued on the back of weak global cues.