FX.co ★ US Stocks Pull Back

On Thursday, U.S. stocks experienced a decline, reversing the gains seen the previous day as investors reevaluated the potential economic slowdown due to tariffs and reduced government spending. The S&P 500 and Nasdaq 100 each fell by 0.5%, while the Dow Jones Industrial Average saw a decrease of 200 points. The market had surged in the prior session following the Federal Reserve's decision to maintain interest rates, which was anticipated. Federal Reserve Chairman Jerome Powell minimized concerns regarding the inflationary effects of President Trump's tariffs, referring to them as temporary. However, the Federal Open Market Committee (FOMC) projections indicated lowered growth expectations and increased unemployment, prompting the market to anticipate three rate cuts by the Fed this year. This was an increase from the previous outlook of two rate cuts prior to the rate decision, aligning now with the latest median projections from the FOMC. Tesla's shares dipped nearly 1% following a recall of a batch of Cybertrucks due to safety issues. Additionally, shares of the U.S.-listed Pinduoduo (PDD) fell after the company failed to meet its sales targets. Investors awaited earnings reports from Micron and Nike, scheduled for release after trading hours.