By Yasin Ebrahim

Investing.com – The S&P 500 eased from record highs Wednesday, as investors opted for caution ahead of Federal Reserve’s monetary policy update.

The index fell 0.1% and reached an all-time record 4,635.15. It was at 143 points, down 0.4%. Nasdaq rose 0.16% after previously achieving a record 15,682.1.

Federal Reserve expects to maintain its benchmark interest at the same level, but will notify that it has met all conditions necessary to reduce its monthly bond purchases.

Treasury yields had been trending higher ahead of the decision with trading at 1.56%.

Utilities were one of the most affected by the rate rises. They act as a bond-proxy, and are under increasing pressure. 

The industrial sector was down by about 1%. This was accompanied by the declines in Generac (NYSE:) & Deere.

Generac (NYSE) plunged over 6% following a Bank of America (NYSE) downgrading the provider of energy technology solutions to neutral from Buy, in light of valuation concerns.

According to the bank, it is “difficult to withdraw its buy rating for the stock due to the company’s high growth rate but that valuation must be considered.

In the meantime, energy also had an impact on the upside momentum in broader markets, as a decrease in oil prices followed by a greater-than-expected weekly stockpiles increase impacted market sentiment. 

Diamondback Energy (NASDAQ :), Halliburton, EOG Resources Inc (NYSE 🙂 had a more than 2 percent drop.

This drop in oil prices occurs just a few days before the OPEC+ meeting, which is due to take place on Thursday. Major oil prices will likely remain steady with plans for gradual production increases of 400,000 barrels per monthly despite increasing pressure to increase output.

Material gains were led by FMC’s 12% increase (NYSE:), after FMC reported better than expected third quarter results. The results came Tuesday, after the close bell.

Large tech trades mixed. Apple (NASDAQ) Facebook (NASDAQ) and Amazon (NASDAQ) traded in green while Alphabet, Google’s parent (NASDAQ) and Amazon traded below flatline.

Here are the latest IPO news  Allbirds (NASDAQ:) made its public market debut in style as the shoe maker surged more than 60% well above its IPO price of $15  per share.

The economic scene saw record activity in the United States, driven by the reopening and expansion of the services sector.

Pantheon Macroeconomics stated in a note that the surge in the index “sends a positive message about the post-Delta economic system.” The bad news is that supply-chain indicators, such as supplier delivery times and prices paid, have all significantly worsened with each of these hitting new heights.