In Short:
– S&P 500 fell 0.12% after Powell said rates will not be cut amid tariff inflation concerns.
– Nasdaq Composite rose 0.15%, while Dow Jones dropped 171.71 points following Powell’s press conference.

The S&P 500 closed lower after Federal Reserve Chair Jerome Powell indicated the bank is not ready to cut rates, evaluating the impact of President Trump’s higher tariffs on inflation.

The index dropped 0.12% to 6,362.90, while the Dow Jones fell 171.71 points, or 0.38%, to 44,461.28. Conversely, the Nasdaq Composite increased by 0.15% to 21,129.67.

Investors focused on Powell’s remarks during his press conference, particularly after the Fed announced no changes to rates following its July meeting.

Powell said that no decisions are made regarding potential policy changes in September. He stressed the importance of maintaining inflation expectations.

Market Reaction

The commentary disappointed traders anticipating a September rate cut, leading to increased Treasury yields.

Notably, the decision to maintain rates wasn’t unanimous, with governors Bowman and Waller advocating for a quarter-point cut.

Following six record closes, Wall Street has experienced two consecutive days of losses, especially within consumer-focused stocks such as Home Depot.