The major averages closed lower ahead of the Fed rate cut tomorrow as investors took some profits ahead of the decision. The Dow Jones Industrial Average fell 125 points, or 0.27%. The S&P 50 fell 8 points or 0.13% while the Nasdaq Composite fell 14 points or 0.07%.

The two-day Fed meeting, which kicked off on Tuesday, is expected to result in a rate cut for the first time since December. Interest rate futures are pricing in a 100% certainty of at least a quarter-point rate cut, according to the CME’s FedWatch tool. What investors are watching most is the central bank’s forecast for rates for the rest of the year and whether voting members are expecting one more additional cut or two more before 2025 ends.

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