Wall Street Dips as Fed-Driven Rally Fades
US equities closed lower on Thursday, giving back some of the prior session’s gains as investors reassessed economic risks and the Fed’s response to potential inflation and slowing growth.
The S&P 500 dipped 0.2%, the Nasdaq 100 lost 0.3%, and the Dow finished marginally in the red. Market sentiment remained cautious after the Federal Reserve kept rates unchanged but raised its inflation forecast while trimming economic growth projections.
Fed Chair Jerome Powell sought to reassure investors, calling tariff-driven inflation "transitory," yet concerns lingered.
Adding to the uncertainty, President Trump ramped up pressure on the Fed to cut rates, fueling expectations of market volatility. Broadcom led chip stocks lower with a 2% drop, while Accenture tumbled 7.4%. Micron and Nike are set to report earnings after the bell.
Source: Trading Economics