FX.co ★ US Stocks Dip as Fed Meets, Trade Hopes Fade

On Tuesday, U.S. stock markets ended lower as investor sentiment diminished due to mixed trade signals and the commencement of the Federal Reserve's policy meeting. The S&P 500 decreased by nearly 0.8%, the Nasdaq 100 fell by 0.9%, and the Dow Jones Industrial Average declined by 389 points. President Trump's inconsistent position on trade—asserting that “we don’t have to sign deals”—contradicted the recent optimism from Treasury officials and lessened hopes for alleviating tariffs. Diplomatic tensions intensified following a heated exchange with Canadian Prime Minister Mark Carney, who declared “Canada is not for sale,” to which Trump responded, “Never say never.” While markets broadly anticipate the Fed to maintain current interest rates, attention remains on Powell's economic forecast. Technology stocks saw a downturn, with Meta dropping 1.8% and Tesla declining 1.7% due to unsatisfactory European sales figures. Palantir Technologies experienced a 12% plunge after reporting results that did not meet investor expectations, whereas Ford's shares increased by 2.4% despite warnings that tariffs could potentially reduce its 2025 earnings by approximately $2.5 billion.