Overview
Today's U.S. stock market closed lower as expectations for a September rate cut by the Federal Reserve were dampened. The Dow Jones and S&P 500 indices saw slight declines following Chairman Powell's remarks, which tempered hopes for a rate reduction despite robust earnings from Microsoft and Meta that spurred a tech sector rebound.
The Federal Reserve decided to hold interest rates steady with a 9-to-1 vote, downplaying hopes for a September rate cut. Chairman Powell emphasized the strong U.S. labor market and persistent above-target inflation, declaring no decision on policy easing by September.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
A Major News Story
- The Fed's decision and Powell's comments reduced the probability of a September rate cut to below 50%.
- Positive earnings announcements from Microsoft and Meta.
- July's ADP private employment increase exceeded expectations yet showed a deceleration in growth.
- Q2 real GDP rose at an annual rate of 3%, although overall growth for the first half of the year slowed to 1.25%.
Tomorrow's Economic Indicators
| Time | Content |
|---|---|
| 20:30 | U.S. July Challenger Job Cuts |
| 20:30 | U.S. June PCE Price Index |
| 20:30 | U.S. Weekly Jobless Claims |
| 20:45 | U.S. July Chicago PMI |
| 23:30 | U.S. EIA Natural Gas Storage |
General Opinion
Market experts suggest that the importance of Fed-related data will increase in the coming months as Powell remains resistant to political pressure for rate cuts. Key attention should be given to labor market and inflation indicators.
