U.S. stocks dipped as anticipation grew for the Federal Reserve’s expected interest rate cut, with the S&P 500 down 0.1% and the Dow falling 0.3%. The Fed is considering rate cuts due to a slowing job market, prioritizing economic growth over inflation concerns from President Trump’s tariffs.

Shoppers increased spending at U.S. retailers, potentially due to higher prices and strong household spending. This data didn’t change expectations for a rate cut, with traders eyeing potential cuts through 2026. Global fund managers are leaning towards stocks despite concerns over high valuations.

Stocks like Dave & Buster’s and New York Times Co. saw declines, while Steel Dynamics and Chipotle Mexican Grill saw gains. Oracle rose amid speculation of involvement in a deal to keep TikTok operating. Overall, the S&P 500 fell, with mixed market performance globally.

In Asia, Japan’s Nikkei 225 hit a new record despite political uncertainty. The 10-year Treasury yield eased slightly. Wall Street awaits the Fed’s decision on rate cuts and future economic projections, which could impact markets further.

Read more at Yahoo Finance: Wall Street edges back from its record heights