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Overnight Markets: Dow, S&P 500 end down as Fed decision looms

Overnight Markets: Dow, S&P 500 end down as Fed decision looms

The Dow and S&P 500 closed down on Tuesday amid subdued activity as investors limited big bets ahead of an expected Federal Reserve interest rate hike.

The Dow Jones Industrial Average fell 70 points, or 0.3%, to 26,492 and the S&P 500 index shed four points, or 0.1%, to 2,916. The Nasdaq Composite Index gained 14 points, or 0.2%, to 8,007, logging its second consecutive positive session.

A boost from the energy sector and strong consumer confidence data was offset by losses in chipmakers and utilities. In the latest economic data, home prices rose 0.2% in July, the slowest pace of growth since last summer. Separately, the US consumer confidence index increased to 138.4 in September from 134.7.

Investors were also looking forward to the Fed’s policy meeting this week, which will likely see interest rates increase for the third time in 2018.

Chinese officials slammed President Donald Trump on Monday, accusing him of “trade bullyism” and pushing an “America First” agenda at the cost of international relations.

In company news, Michael Kors Holdings shares rose 2% after the fashion company said it would buy Italy-based luxury goods company Gianni Versace in a deal valued at $2.12 billion.

Sonic Corp. rallied 19% on news that Inspire Brands agreed to acquire the drive-in fast-food chain for about $2.3 billion, including assumption of Sonic’s debt.

AstraZeneca said that data showed its cancer treatment, Imfinzi, reduced the risk of death for patients by nearly a third compared with the standard of care. US-listed shares advanced 2.2%.

Shares of Intel declined 2.1% after Raymond James downgraded the stock to underperform.

Shares of Instagram slid 0.3% after the co-founders of the social media giant announced they have resigned from Facebook.

Ascena Retail Group soared 12% after it late Monday reported earnings and sales that beat expectations.

Novartis plans to cut more than 2,000 jobs as part of a global restructuring. Shares of US-listed shares rose 0.7%.

In Asia, share markets were mixed on Wednesday morning, following the White House's restatement of its tough stance on trade.

Japan’s Nikkei 225 was down by 0.2%, while the Topix index slipped by 0.69%. Down Under, the ASX 200 rose 0.21%. In Greater China markets, Hong Kong's Hang Seng index climbed about 0.5% in the early hours of trading. The Shanghai composite was higher by 0.13%.

South Korean markets are closed for a public holiday.

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