Wall Street Wobbles: Market Dynamics Ahead of Fed's Decision

Wall Street experienced a downturn as investors assessed upcoming Federal Reserve actions. The Nasdaq exceeded 20,000, boosted by technology stocks, but uncertainties over future rate cuts weighed on the market. Mixed performances by major stocks and unexpected economic data added to market volatility.

In a volatile session, Wall Street closed lower on Thursday as investors navigated crucial economic indicators ahead of the Federal Reserve's anticipated meeting next week. The Nasdaq, which had surpassed the 20,000 mark on Wednesday thanks to a tech stock surge, saw a dip as market momentum cooled.

The S&P 500 hit its highest in nearly a week, driven by an inflation report that reinforced expectations for a 25-basis-point rate cut at the Fed's December meeting. However, unexpected claims for U.S. unemployment benefits and rising producer prices signaled potential challenges in the labor market, prompting investor caution.

Stock performances were mixed, with Nvidia declining and Microsoft on an uptrend, while Adobe's forecast fell short of Wall Street expectations, impacting the broader tech sector. Meanwhile, Warner Bros Discovery's strategic restructuring announcement buoyed investor sentiment in the media space, demonstrating the dynamic shifts in market leadership.

(With inputs from agencies.)