The sentiment in the broader market was mixed, as investors watched Federal Reserve policies closely. The President of the Federal Reserve Bank of New York, John Williams, signaled rate cuts might still be possible in the near term, since labor markets have been showing softness. His comments helped to raise expectations of a possible December rate cut.
Speculation of rate cuts has been one of the key drivers of sentiment. However, a series of recent signs by other Federal Reserve officials hinted that the central bank might not touch its stance, which has kept investors guessing about the future course of interest rates.
A closely watched gauge of consumer confidence, the University of Michigan’s consumer-sentiment index, fell in November to some of the lowest levels on record. The report said the decline stemmed from weaker views on personal finances.
Investor sentiment had already been extremely fragile. The US government shutdown delayed the release of consumer inflation data for October, adding to the uncertainty.