US stocks take breather, but remain close to record levels

U.S. stocks fell Wednesday, but remained close to record highs as investors awaited further cues on the Federal Reserve and interest rates.

At 1:16 ET (1716 GMT), Dow Jones Industrial Average fell 276, or 0.7%, S&P 500 fell 0.2%, while NASDAQ Composite slipped 0.2%.

The S&P 500 and the DJIA hit record highs on Tuesday, continuing the optimism generated by last week's bumper interest rate cut by the Fed.  Powell address, PCE data in focus 

Several Fed officials are set to speak in the coming days -- most notably Chair Jerome Powell on Thursday -- and they are likely to offer up more cues on the bank’s plans to cut interest rates.

The Fed cut rates by 50 basis points last week and announced the start of an easing cycle, which analysts expect could bring rates lower by a total of 125 bps this year.

PCE price index data - the Fed’s preferred inflation gauge - is due on Friday, and is likely to factor into the central bank’s plans for interest rates. 

On the economic calendar, building permits also grew by less than expected in August, data showed Wednesday, also raising concerns about the country's housing market. Nvidia continues climb; Micron earnings eyed

Artificial intelligence major Nvidia (NASDAQ:NVDA ) stock rose 1.6%, continuing Tuesday's positive session following reports that CEO Jensen Huang was done selling Nvidia shares after offloading more than $700 million worth of shares under a trading plan.

Huang’s share sales had rattled some confidence in the company, especially after its quarterly results missed some high expectations, and it flagged delays in its advanced AI chips.

Chip stocks will likely continue to dominate attention after the closing bell, when chipmaker Micron Technology Inc (NASDAQ:MU ) is slated to deliver quarterly results. 

Flutter Entertainment jumps on stock buyback plans; Stitch Fix slumps on weaker outlook

Flutter Entertainment PLC (NYSE:FLUT ) jumped 5% after parent company FanDuel said it plans to buyback up to $5 billion and unveiled long-term growth forecasts seeking to double profit by 2027.

Stitch Fix (NASDAQ:SFIX ) plunged 38% after delivering weaker-than-expected guidance, forecasting to return to revenue growth by 2026. The outlook offset a narrower than expected loss in Q4.

(Peter Nurse, Ambar Warrick contributed to this article.)

Source: Investing.com