US Stocks Turn Lower after Powel's Remarks
US stocks declined after the Federal Reserve maintained interest rates, with Chair Jerome Powell indicating no imminent rate cuts. The S&P 500 fell 0.4%, the Dow dropped over 300 points, and the Nasdaq decreased by 0.2%. The Fed's decision was not unanimous, with two governors dissenting for a rate cut. Corporate earnings reports showed mixed results, with Humana, Kraft Heinz, and Visa performing well, while Starbucks fell despite strong revenue. Additionally, President Trump announced new tariffs on Indian and Brazilian goods, escalating trade tensions.
US stocks pared gains in the final trading hour Wednesday after the Federal Reserve held interest rates steady and Chair Jerome Powell signaled no decision had been made on a potential September cut.
The S&P 500 slipped 0.4%, the Dow fell over 300 points, and the Nasdaq ticked lower by 0.2%, reversing earlier gains driven by a stronger-than-expected GDP report.
Powell noted the Fed is still evaluating the inflation impact of Trump’s tariff hikes, tempering expectations for near-term easing.
The rate decision was not unanimous, with Fed governors Michelle Bowman and Christopher Waller dissenting in favor of a 25 basis-point cut.
Investors also weighed a batch of corporate earnings: Humana, Kraft Heinz, and Visa rose on upbeat results, while Starbucks dropped over 1% despite stronger revenue.
Attention turned to after-hours reports from Meta and Microsoft.
Meanwhile, trade tensions escalated as President Trump announced a 25% tariff on Indian goods and a 50% tariff on Brazilian imports.
