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Dow drops 500 points by the closing bell while S&P 500 hits 2018 low ahead of possible Fed rate hike

President Trump tweeted that 'it is incredible' that the central bank is considering another hike in its target lending rate

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J&J sank after a report that it knew for decades about its Baby Powder risks

US stocks ended the day in negative territory as the outcome of trade talks between US and China remain uncertain.

The Federal Reserve is expected to hike its benchmark overnight lending rate this week.

The Dow Jones Industrial Average fell about 500 points by the end of the day.

American Express Company (NYSE:AXP) and Microsoft Corp (NASDAQ:MSFT) were top decliners on the index with no gainers in sight.

The S&P 500 was down around 50 points by the end of the trading day, hitting a new low for 2018.

Xerox Corp (NYSE:XRX) was a top decliner on the S&P following a downgrade from Moody’s Investors Service.

The tech-heavy Nasdaq slipped about 160 points, dragged lower by Tesla Inc (NASDAQ:TSLA), Amazon.com Inc (NASDAQ:AMZN), Workday Inc (NASDAQ:WDAY) and Baidu Inc (NASDAQ:BIDU).

The Russell 2000 was down about 2.4% by the closing bell.

Synergy Pharmaceuticals Inc (NASDAQ:SGYP) was one of the best-performing stocks on the small-cap index following Bausch Health Companies Inc’s (NYSE:BHC) $200 million bid last week.

Up north, the TSX dipped around 250 points as global growth concerns weighed on the exchange.

1:15 PM: Dow Jones Industrial Average trades below 24,000 on concern Federal Reserve will raise interest rates

Stocks fell on Monday as investors braced for another possible increase in interest rates by the Federal Reserve later this week.

President Donald Trump said in a Twitter posting that “it is incredible” that the Fed is considering another hike in its target lending rate.

The central bank will come out with its decision on US interest rates at the conclusion of its last policy meeting of 2018 on Wednesday. The rate decision will be followed by a press conference by Fed Chairman Jerome Powell.

The Dow Jones Industrial Average dropped 114.67 points, or 0.5%, to 23,985.84.

Johnson & Johnson (NYSE:JNJ) was the biggest loser among the blue chips, sinking 3.4% to $128.39, after Reuters reported that the company knew for decades that its Baby Powder contained asbestos, which causes cancer.

Goldman Sachs Group Inc (NYSE:GS) slipped 1.6% to $170 after Malaysia filed criminal charges against the investment bank in a global fraud scandal.

Boeing was the biggest winner among the 30 Dow companies after its new plant in China delivered its first 737 airliner. Its shares climbed 1% to $321.86.

On the broader market, the S&P 500 dropped 17.80 points, or 0.7%, to 2,582.15. The Nasdaq slipped 48.05, or 0.7%, to 6,862.59.

Investors are facing a possible partial US government shutdown if Congress and Trump fail to agree on money for a border wall with Mexico.

Small caps also fell, with the Russell 2000 declining 8.77 points, or 0.6%, to 1,402.02. In Canada, the Toronto Stock Exchange shed 102.27 points, or 0.7%, to trade at 14,492.80.

Among other developments, Chinese President Xi Jinping will mark in a keynote speech later this week the 40th anniversary of Deng Xiaoping’s opening of the nation’s economy to the world.

10:00 AM: US stocks fall further as glum mood persists before Fed decision on rates

US stocks extended their retreat Monday as markets struggle to turn around their fortunes before a verdict by the Federal Reserve on possibly raising interest rates this week.

The markets are also being weighed down by the uncertainty surrounding Brexit in the UK. 

The Dow Jones Industrial Index fell 215 points to trade around 23,885.

The S&P 500 dropped 0.8% to 2,578. Nasdaq declined almost 1% to 6,844.

The Russell 2000 small cap futures fell nearly 1% to 1,399.

In Canada, the TSX shed 0.2% to trade around 14,560.

The Federal Reserve will come out with its decision on US interest rates at the conclusion of its last policy meeting of 2018 on Wednesday.

As usual, the rate decision will be followed by a press conference by Fed chairman Jerome Powell.

The Bank of Japan’s monetary policy decision will be released on Thursday as will the Bank of England. The BOJ decision will be followed by a briefing from Governor Haruhiko Kuroda. 

Chinese President Xi Jinping marks the 40th anniversary of Deng Xiaoping’s opening of the nation’s economy to the world with a keynote speech on Tuesday. 

More importantly, the markets are anxiously awaiting a possible partial US government shutdown if the US Congress and President Trump fail to agree on money for Trump’s border wall with Mexico. 

7:15 AM: US stock futures lower ahead of Fed verdict on rates and Brexit uncertainty

US stock futures were marginally easier Monday as the trade looked toward a slew of decisions this week led by the Federal Reserve on interest rates.

The market is also awaiting a speech in Parliament in London regarding Brexit amid reports the government may be warming to a second referendum on the UK leaving the European Union.

The Dow Jones Industrial Index futures were off 35 points to around 24,078.

The S&P 500 futures dipped 0.1% to 2,599. Nasdaq futures were also down 0.1% to 6,592.

The Russell 2000 small cap futures fell 1.5% to 1,410.

The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference by Fed chairman Jerome Powell.

The Bank of Japan’s monetary policy decision is due on Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also set for Thursday.

Chinese President Xi Jinping marks the 40th anniversary of Deng Xiaoping’s opening of the nation’s economy to the world with a keynote speech at a conference scheduled for Tuesday.

Later in the week, the markets may reel from a partial US government shutdown if the US Congress and President Trump fail to agree on money for Trump’s wall along the Mexican border.

In London, the FTSE was little changed.

In Tokyo, the Nikkei 225 added 0.6% at 21,506.88 while the Shanghai index was up almost 0.2% to 2,597.

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