US stock indices opened lower on Tuesday as investors positioned ahead of the Federal Reserve's expected rate decision on Wednesday. The Dow Jones Industrial fell 0.3 percent to 52,270 points, the S&P 500 slipped 0.1 percent to 7,612, and the Nasdaq 100 dropped 0.3 percent to 29,130.
BlackRock reaffirmed its "overweight" rating for US equities, arguing that rising corporate earnings estimates are cushioning valuations against higher capital costs and elevated energy prices. Long-dated US Treasury yields have climbed back to levels last seen in 2007, while Brent crude has remained well above $100 a barrel on Middle East delivery risks. BlackRock noted it is not counting on monetary policy or energy prices easing quickly.
On Wednesday, the Fed is widely expected to raise its policy rate by 25 basis points to a range of 3.75–4.00 percent under new Chair Kevin Warsh, who has not signaled his stance explicitly.
Berenberg upgraded Eli Lilly to "buy" from "hold," raising its price target to $1,400 from $1,220 — implying roughly 23 percent upside from the 14 September close. Analyst Kerry Holford cited the company's continuing leadership in the weight-loss drug market, with Zepbound and Mounjaro topping their respective segments for obesity and diabetes. She expects an upcoming oral GLP-1 diabetes indication for Foundayo (orforglipron), launched in April, to spur further demand, alongside the Medicare GLP-1 Bridge programme that provides covered patients access to certain GLP-1 drugs for $50 a month.
Chinese steel producers called for tighter output limits and inventory drawdowns, according to the China Steel Association's WeChat post cited by Bloomberg, prompting Steel Dynamics shares to climb 4.5 percent in pre-market trade.
Crypto-related equities faced selling pressure amid fading hopes for comprehensive US digital-asset legislation this week. Bitcoin fell 1.7 percent, Coinbase shares dropped 4 percent, and Bullish declined more than 2 percent.
In Switzerland, the SMI fell 1.22 percent to 13,708.71. UBS tumbled 5.8 percent intraday after Bank of America CEO Brian Moynihan said investment-banking fees would contract at least 10 percent in the third quarter and sales-and-trading revenue would hold flat. Partners Group also declined 2.5 percent, while DocMorris rose more than 3 percent.
European natural-gas futures retreated 1.5 percent to €80.80 per megawatt-hour following a four-year high, as higher Norwegian deliveries and stronger wind and solar generation eased near-term supply concerns. EU gas storage stands at 68.2 percent, about 16.2 percentage points below the five-year average, and analysts at Mind Energy warned that Middle East tensions and tight global LNG availability continue to support prices.
