The U.S. stock market today, which began an active trading session on Tuesday, finished the session in the red after the publication of strong macroeconomic statistics, which increased the likelihood of a more aggressive tightening of monetary policy by the U.S. Federal Reserve (FRS).

U.S. stock market analysis

• The Dow Jones Industrial Average decreased by 79.75 points (0.24%) to 32653.2 points.
• The Standard & Poor’s 500 index fell 15.88 points (0.41%) to 3,856.1 points.
• The Nasdaq Composite fell 97.3 points (0.89%) to 10890.85 points.

The ISM Manufacturing index of U.S. manufacturing activity fell to 50.2 points in October from 50.9 points a month earlier, Institute for Supply Management (ISM) data released Tuesday showed. The indicator updated to its lowest level since mid-2020, but managed to stay above the 50-point mark separating a slowdown from growth.

Meanwhile, the number of open jobs in the US unexpectedly increased by 437,000 to 10.717 million in September from 10.28 million in August. Experts on average expected a decline to 10 million, says Trading Economics.

The meeting of the Federal Reserve will be over on Wednesday evening. According to its results, the key interest rate will be increased again by 75 basis points, up to 3.75-4% per annum.

The data on the good state of the U.S. economy has put the market’s hopes that the Fed is signaling the likelihood of a slowdown in the rate hike in jeopardy, MarketWatch noted.

“The market has already put a 75bp hike this month and a 50bp hike next month into current quotations,” wrote Merlin Investor founder and head Petrelli, noting that if the Fed were to stick to that plan, the market would react positively; tougher measures do not yet appear necessary.

Market participants were also estimating the quarterly reports of the big American companies. As of Monday, 268 companies in the S&P 500 index had released their reports, and 73% of them exceeded analysts’ expectations for earnings per share, according to data from Refinitiv.

Earlier we reported that most European stock markets are trading negative.