Wall Street is in turmoil as investors pull back ahead of an eagerly anticipated interest rate cut, sending stocks into a tailspin.

The Dow Jones Industrial Average saw a decline of 165 points, translating to a 0.4% drop. The S&P 500 slipped by 0.1%, while the Nasdaq Composite had a more volatile performance, oscillating between gains and losses. However, tech giants like Tesla, Amazon, Apple, and Meta Platforms are providing some glimmers of hope, driving parts of the Nasdaq higher.

In terms of sector performance, the energy and consumer discretionary sectors managed to gain ground. This was largely due to a 1.4% increase in WTI crude oil futures, with Tesla and Amazon leading the charge in consumer spending.

Yet, looking at exchange-traded funds (ETFs) that concentrate on specific stock factors, the majority are in the red. This downturn stretches across various categories, including momentum, growth, small-cap stocks, and even low volatility and dividends.

On the bond market side, the yield on the 2-year Treasury note has dipped to 3.52%, reflecting a whopping 96.1% chance that a quarter-point interest rate cut will be announced tomorrow. Only a slim 3.9% remains for speculation on a more substantial half-point reduction.

As whispers grow around the Federal Reserve’s decision, market watchers are closely monitoring developments, with key figures like Trump, Miran, and Cook putting additional scrutiny on the financial landscape. What’s next for the markets? Only time will tell.