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US STOCKS-S&P 500 ends lower as investors eye Fed meeting

Published 16/03/2021, 21:00
© Reuters.
US500
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IXIC
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US10YT=X
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VIX
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(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window.)
* Energy and industrials lose ground
* Retail sales drop more than expected in Feb

(Updates to close of trading)
By Noel Randewich
March 16 (Reuters) - The S&P 500 ended lower on Tuesday as
investors awaited the result of the Federal Reserve's two-day
policy meeting.
The U.S. stock market lacked direction for much of the day
after the S&P 500 and Dow Jones Industrial Average closed at
record highs in the prior session as optimism about a $1.9
trillion fiscal stimulus package and ongoing vaccination drives
bolstered views that the economy was on a path to recovery.
At the same time, fears about an overheating economy and a
recent increase in interest rates have increased scrutiny on the
Fed's two-day meeting, where policymakers are likely to raise
economic forecasts and repeat their pledge to remain
accommodative for the foreseeable future. Apple Inc AAPL.O rose after Evercore ISI hiked its price
target on the iPhone maker's shares to the highest among
analysts covering the company, according to Refinitiv data.
Wall Street's fear gauge .VIX hit a five-week low at 19.68
points. A midafternoon rise in the 10-year Treasury yield
US10YT=RR to 1.62% nipped some enthusiasm for high-growth
stocks. The benchmark U.S. 10-year Treasury hit a 13-month high
last week.
Investors have slightly increased their cash allocation,
deeming that inflation and "taper tantrums" could topple the
record rally in financial markets, BofA's March fund manager
survey showed on Tuesday. "This Fed meeting is one of the most important ones for the
market in a long time. It is the first we have had after the
recent inflation rate rise and concerns about inflation," said
Tom Martin, senior portfolio manager at Globalt Investments in
Atlanta.
Data showed retail sales dropped more than expected in
February due to bitterly cold weather across the country.
Another report indicated winter storms in Texas led to a plunge
in U.S. factory output last month. Unofficially, the Dow Jones Industrial Average .DJI fell
128.3 points, or 0.39%, to 32,825.16, the S&P 500 .SPX lost
6.37 points, or 0.16%, to 3,962.57 and the Nasdaq Composite
.IXIC added 11.86 points, or 0.09%, to 13,471.57.
The S&P 500 energy index .SPNY tumbled after a drop in oil
prices while financials .SPNY and industrials .SPLRCI also
retreated. The communication services .SPLRCL and technology
.SPLRCT indexes both rose.
The Russell growth index .RLG rose, while the Russell
value index .RLV fell in a slight reversal of a recent trend
away from technology and other high-growth stocks.
Ford Motor Co F.N dropped after announcing a $2 billion
convertible debt deal.

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