U.S stock market down on Tuesday morning as jittery investors are waiting for the Federal Reserve’s decision on interest rates and also about Britain’s vote on whether to leave the European Union or not. At 11:00 am, Dow Jones Industrial Average Index down 0.6% to 17,625.41. S&P 500 decreased approximately 0.62% to 2,066.18, and NASDAQ Composite fell 0.6% to 4,819.324. Bond yields continued their steep fall as investors seeking safe assets. The yield on the 10-year Treasury note down to 1.59% from 1.61% the day before.
The central bank’s two-day meeting began Tuesday, with a decision on interest rates to be announced Wednesday. The Fed was expected to raise interest rates but now appears likely to wait and see how economic changes develop. Last month, many investors were betting that the Fed would raise rates, but the most recent monthly jobs reports were weaker than expected, and expectations have fallen.
Stocks are under pressure from uncertainty about whether British voters will choose to leave the European Union in a June 23 referendum. Polls show the vote could go either way, and investors are starting to worry about the consequences. A British exit from the European Union, known informally as British exit, would most likely hurt the British economy the most and destabilize the rest of Europe.
“People may be looking at British exit, but what I’m look at is a flattening yield curve, high equity valuations, and slowing profits growth—that’s not a particularly attractive place to be in equity land,” said Alastair George, chief strategist at Edison Investment Research, “We’re getting signs from the U.S. that the recovery might not be as strong as originally anticipated, and there’s yet another flip-flop in Fed policy.”