Investing.com — U.S. stocks were trading lower as investors pause before next week’s interest rate decision by the Federal Reserve.
On Monday, stocks sold off on concerns the Fed will continue with its rate-hiking path for longer. It is widely expected to raise rates again next week, but perhaps by a smaller half-percentage point increment than at each of its four previous meetings.
The fear was fueled by better-than-expected data on the services industry, adding to a better-than-expected report on jobs last Friday. Stronger data could give the Fed reason to continue on its rate path for longer.
Also hanging in the balance: the results of a runoff election today in Georgia, a key battleground state. The vote could determine the balance in the Senate, where Democrats hold a razor-thin majority.
A win by incumbent Democrat Sen. Raphael Warnock could give the party 51 seats in the Senate, while a victory by Republican candidate and former football star Herschel Walker could give the GOP power to block initiatives.
GitLab Inc (NASDAQ:GTLB) shares are up 10.5% after it beat expectations on sales and reported a smaller-than-expected loss for the quarter. Signet Jewelers Ltd (NYSE:SIG) shares jumped 19.4% after it reported profit per share that was more than double expectations and met expectations with a 7.6% drop in same-store sales.