Wall Street Eyes Fed Decision Amid Mixed Market Signals

U.S. stock indexes anticipate a mixed opening as traders await the Federal Reserve's monetary policy decision. Speculation on a significant rate cut has risen following recent economic data. Key stocks such as Apple, Intel, and Alcoa have shown varied performances, reflecting broader market uncertainties.

The main U.S. stock indexes were poised for a mixed open on Monday as Wall Street traders exercised caution ahead of the Federal Reserve's pivotal monetary policy decision later this week. Most traders are pricing in a significant cut in borrowing costs, escalating from a 30% probability to 65% for a 50-basis-point reduction.

"Influential investors have been advocating for a 50-basis-point cut, with increasing chatter about recession risks," said Sam Stovall, CFRA Research's chief investment strategist. "This would imply that the Fed is taking a proactive stance."

Market optimism early this year saw the S&P 500 and the Dow approaching record highs. However, recent fluctuations in key stocks like Apple, Intel, and Alcoa, alongside varied economic indicators, underscore the market's cautious sentiment.

(With inputs from agencies.)