[New York Stock Market] Mixed Close Ahead of Fed Meeting on US Interest Rate Decision... Dow Hits All-Time High

The New York stock market closed mixed a day before the Federal Open Market Committee (FOMC) meeting in September, where a U.S. interest rate cut is expected.

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On the 16th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 41,622.08, up 228.30 points (0.55%) from the previous session. This is an all-time high.

The S&P 500, which is centered on large-cap stocks, rose 7.07 points (0.13%) to 5,633.09, while the tech-heavy Nasdaq index fell 91.85 points (0.52%) to 17,592.13.

Among the 11 sectors that make up the S&P 500, nine sectors including financials and energy showed strength, except for two sectors including technology. According to reports from AP and Reuters, Intel, which is expected to receive a $3.5 billion (about 4.6 trillion won) U.S. Department of Defense subsidy, and Oracle, which reported earnings better than experts' expectations, led the rally.

CNBC reported that the Nasdaq index's decline was attributed to investors feeling burdened by the tech stock downturn amid the Federal Reserve's potential interest rate cut.

The market expects the Fed to cut the benchmark interest rate for the first time since it began raising rates in March 2022 at the September FOMC meeting on the 17th-18th (local time). The current benchmark rate is 5.25-5.50%, the highest level in 20 years. The key issue is how much the rate will be cut, with forecasts divided between a 'baby cut' (0.25 percentage point rate cut) and a 'big cut' (0.5 percentage point cut).