Apple drop drags NASDAQ down; S&P pares gains

Stocks on Wall Street have retreated from the highs of the day, but the Dow and S&P remain well-advanced today and within 1% of their all-time highs.

In the last hour of trading in New York, the Dow was up 0.76% or 117 points at 15,493. The S&P 500 was unable to hold above the psychologically important level of 1700, moving to 1698.7, which was still up 0.63% for the day.

The NASDAQ 100 slipped into the red, however, giving up its earlier gains after Apple slid more than 3%. The fall in Apple happened after a report in the Wall Street Journal that China Telecom appears to be offering a smaller subsidy on the iPhone than in the past. The latest versions of the iPhone have yet to go on sale, but the company’s share price has declined almost 10% since their announcement.

The latest FOMC meeting begins tomorrow, and is likely to grab the attention of investors until at least the policy announcement late on Wednesday. The consensus of expectation is still for the central bank to start tapering its stimulus, despite a disappointing employment situation report for August, signs of continued cooling in inflation and soft consumer sentiment.

We have August Consumer Price Index(CPI) data released tomorrow before the US stock market opens, which may well have a bearing on the FOMC’s decision. THe CPI is expected to have advanced just 0.1% month-on-month in August.

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