The S&P 500 slid 0.4% on Tuesday, Sept. 17. Major U.S. equities indexes faltered as the Federal Reserve kicked off its final two-day policy meeting of 2024. The central bank is widely expected to announce a third consecutive interest rate cut on Wednesday afternoon. Investors are likely to scrutinize the language in the accompanying statement and the press conference with Fed Chair Jerome Powell for hints about next year.
Health care stocks remained under pressure following President-elect Donald Trump’s comments about removing the “middleman” in the prescription drug markets. Humana (HUM) shares lost 10.2%, the steepest daily drop of any S&P 500 stock on Tuesday. Piper Sandler analysts flagged earnings risks related to certain plans for military veterans. CVS Health (CVS) shares sank 5.5% as political sentiment against the pharmacy benefit management business gathers steam.
Shares of government technology provider Amentum Holdings (AMTM) tumbled 9.7%. Despite swinging to a fourth-quarter profit from a loss a year ago, executives expect a winding down of certain government programs to weigh on growth in fiscal 2025.
Broadcom (AVGO) shares sank 3.9%, reversing a small portion of a massive run-up. The markets digested the chipmaker’s strong earnings results, AI growth, and collaboration with Apple on an AI server chip. Despite the drop, Broadcom’s market capitalization remains above $1 trillion.
The top performance in the S&P 500 on Tuesday belonged to Pfizer (PFE) shares, which jumped 4.3%. The pharma and biotech giant provided guidance for fiscal 2025. Its full-year profit forecast was in line with analysts’ estimates. Pfizer anticipates sales of its COVID-19 vaccine and medication to remain consistent with 2024 levels.
Fox Corp. (FOXA) shares added 4.3% after reports that FOX News posted a record of more than 400 million views on YouTube in November, topping all other news platforms. FOX News also holds an advantage in cable TV ratings and social media engagement. Fox Corp. Class B (FOX) shares were up 4.1%.
Tesla (TSLA) shares built on the previous session’s record high, advancing 3.
The S&P 500 saw gains and losses today. Health care stocks fell as Trump eyes ‘middlemen’. On Tuesday, Mizuho became the latest research firm to boost its view on the electric vehicle (EV) juggernaut. Mizuho upgraded Tesla stock to ‘outperform’ from ‘neutral’ and more than doubled its price target. Echoing other analysis, Mizuho cited expectations for more relaxed self-driving regulations and other tailwinds for Tesla under the incoming presidential administration.