US stocks retreat from record highs, Dow Jones sheds 125 points

US indices closed lower on Sept. 16, pulling back from record highs, as caution dominated market sentiment with the start of the Federal Reserve’s policy meeting, despite investor hopes for a potential resumption of interest rate cuts by the central bank.

The Dow Jones Industrial Average dropped 0.27%, or 125 points, to 45,757 at close.

The broader S&P 500 index inched down 0.13%, or 8 points, to 6,606, after hitting an intraday record of 6626.99 points earlier in the session.

Meanwhile, the Nasdaq Composite remained stable at 22,333, pressured by declines in major technology stocks including Nvidia, Microsoft, and Alphabet.

In Europe, the Stoxx Europe 600 fell 1.14% to 550, weighted by a 2% drop in banking sector shares.

Germany’s DAX lost 1.77% to 23,329 points, France’s CAC 40 decreased 1% to 7,818, while London’s FTSE 100 shed 0.88% to 9,195 points.

Following a public holiday, Japanese markets resumed trading with the Nikkei 225 advancing 0.30% at 44,902 points, while the broader Topix index gained 0.25% to 3,168. Both indices recorded new all-time highs.

In oil markets, Brent crude futures for November delivery edged up 1.53%, or $1.03, to $68.47 a barrel.

US WTI crude futures for October delivery rose 1.93%, or $1.22, to $64.52 a barrel.

The Federal Reserve began its two-day policy meeting on Sept. 16, with growing expectations of a potential resumption of interest rate cuts, after keeping rates steady throughout 2025 within a range of 4.25% to 4.50%.

Investors are closely watching for the release of the Federal Open Market Committee’s (FOMC) quarterly economic projections, which will be unveiled following the conclusion of the meeting today, Sept. 17.