S&P 500 closes lower as Powell indicates Fed’s hesitation on rate cuts amid tariff impact concerns
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.
