Stock market today: Live updates
Traders work on the floor of the New York Stock Exchange on July 23, 2025 in New York City.
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The S&P 500 gave up its gain on Wednesday and turned lower after Federal Reserve Chair Jerome Powell signaled the central bank isn’t ready to cut rates as it assesses the impact of President Donald Trump’s higher tariff rates on the inflation picture.
The broad market index slipped 0.3%, after gaining 0.4% earlier in the session.The Dow Jones Industrial Average slipped 300 points points, or 0.7%. The Nasdaq Composite lost 0.1%.
Investors parsed Powell’s comments at a press conference for insights into the Fed’s next move after it didn’t budge on rates Wednesday following its July meeting. Powell said that the central bank has “made no decisions” about a potential policy change in September.
“Our obligation is to keep longer term inflation expectations well anchored and to prevent a one time increase in the price level from becoming an ongoing inflation problem,” Powell said. “Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen.”
S&P 500 intraday
The comments poured cold water on traders hoping for a rate cut in September and at least another decrease before the year is out. Treasury yields jumped as Powell signaled it may take a bit to assess the effect of tariffs on consumer prices.
The central bank’s decision to keep rates the same was not unanimous, however, with Fed governors Michelle Bowman and Christopher Waller dissenting. Both were in favor of a quarter-point cut at the current policy meeting.
“While the Fed held rates at its July meeting, the two dissents highlight the fracturing view of potential tariff impacts on the economy and inflation,” said Ryan Weldon, investment director and portfolio manager at IFM Investors.
It was the second day off losses for Wall Street following a streak of seven record highs for the S&P 500. Major averages started the day mostly in the green, encouraged by a better-than-expected GDP report that signaled to some that the economy was weathering higher tariff rates.
The post-Fed losses were led by consumer-focused stocks like Home Depot, which could benefit from lower rates.
