S&P500: Oracle Rallies on TikTok Hopes as Index Slips From Record Highs

Stocks Open Higher but Turn Lower as Fed Meeting Gets Underway

U.S. equities started Tuesday on a positive note, with the S&P 500 touching fresh record territory, before slipping into negative territory later in the morning session.

As of 14:00 GMT, the Dow Jones Industrial Average was down 165 points, or 0.36%, at 45,718.41. The S&P 500 fell 0.08% to 6,609.79, while the Nasdaq Composite dipped 0.04% to 22,339.35. Traders are cautious as the Federal Reserve begins its two-day policy meeting.

Why Did Stocks Reverse After Record Highs?

The S&P 500 briefly hit 6,624.13 earlier in the session, extending Monday’s record close above 6,600. Gains were driven by strength in large-cap technology stocks and optimism around U.S.-China trade talks. However, profit-taking and investor caution ahead of the Fed’s policy announcement pulled indexes lower. Futures markets point to a fully priced-in quarter-point cut, but traders are bracing for Fed Chair Jerome Powell’s tone on future easing.

What Signals Came From U.S. Economic Data?

Retail sales rose 0.6% in August, doubling expectations of 0.3% and matching July’s upwardly revised pace. Excluding autos, sales gained 0.7%, showing strength across online shopping, restaurants, and apparel. Year-over-year, sales were up 5%, outpacing consumer inflation at 2.9%. The data points to resilient consumer demand, easing concerns that labor market softness might weigh on spending.

Which Companies Are Moving Markets?

Oracle surged 5% after reports it is part of a consortium aiming to secure TikTok’s continued U.S. operations.

Chipotle climbed 2% after expanding its buyback program by $500 million, and Novo Nordisk advanced 3% on promising trial data for its weight-loss drug.

Denny’s rose 1.5% as activist investors disclosed a 9.4% stake, while ArcBest gained 1% after boosting its buyback authorization.

On the downside, Dave & Buster’s sank 16% after posting weaker-than-expected earnings, while Adtran dropped more than 8% following a convertible notes offering.

Rocket Lab slid nearly 4% after announcing plans to sell $500 million in stock, and Oscar Health fell 4% on news of a $355 million debt sale.

Nvidia eased slightly after reports of weak demand for its China-focused RTX6000D chip.

What’s Next for Traders Watching the Fed?

Markets are firmly focused on Wednesday’s Fed decision and Powell’s press conference. While a rate cut is expected, the tone around inflation risks and future easing will determine whether equities can extend their record run.

Strong consumer data supports the bull case, but a hawkish shift could stall momentum. Traders should remain focused on Powell’s guidance as the key driver of near-term market direction.

More Information in our Economic Calendar.