Stocks Slip Ahead Of Fed Meeting, Chipmakers Suffer From China’s Threat, Bitcoin Spikes Above $107,000: What’s Driving Markets Tuesday?

The stock market edged lower by midday Tuesday as investors treaded cautiously ahead of the Federal Reserve’s policy decision scheduled for Wednesday.

Although a rate cut appeared widely priced in—with Fed Funds futures assigning a 96% probability—investors are fully focused on the Fed’s forward guidance and Chair Jerome Powell‘s remarks, particularly in light of recent robust economic data.

November’s retail sales data showed an unexpected rebound, rising 0.7% month-over-month, surpassing expectations of 0.5%. On an annual basis, sales climbed 3.8%, the fastest pace since December 2023, driven by strong auto sales growth.

Semiconductor stocks led the downturn amid renewed geopolitical tensions following reports that China is broadening antitrust scrutiny on U.S. chipmakers’ acquisitions in recent years. Last week, Beijing launched an investigation into Nvidia Corp.’s (NASDAQ:NVDA) …

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