Fed Speculation and Market Dynamics: A Tumultuous Monday on Wall Street

Tech stocks dragged U.S. indexes with key market indicators falling on Monday as anticipation builds ahead of a critical Federal Reserve meeting. Investors are speculating on a potential interest rate cut to support economic stability. The dollar hit a one-year low against the yen, while oil prices rose amid production disruptions.

Tech stocks exerted downward pressure on U.S. indexes, with the dollar reaching a one-year low against the yen on Monday. Investors are keenly watching the Federal Reserve's upcoming meeting, which is expected to initiate a long-awaited easing cycle.

Market expectations have increased that the Federal Reserve could slash interest rates by half a point—exceeding prior predictions—to maintain economic stability amid slowing job growth and moderating inflation. The decision is scheduled for Wednesday.

Nvidia and Apple were among the tech stocks that dipped, each losing more than 2%. Despite this, the S&P 500 posted a minor gain, and the Dow Jones Industrial Average hit an intraday record high. Market analyst Kathleen Brooks noted that the Fed's rationale behind any rate cut would be scrutinized closely by investors.

(With inputs from agencies.)