FX.co ★ US Stocks Hover Firmly Higher after FOMC

U.S. stocks regained their upward momentum as investors weighed the effects of tariffs on corporate earnings and the Federal Reserve's monetary policy. The S&P 500, Nasdaq 100, and Dow Jones each rose approximately 0.5%. Minutes from the Federal Open Market Committee's latest meeting revealed that the committee views the tariffs, announced by the White House, as inflationary for the U.S. economy. This perception has led the Federal Reserve to hold off on resuming its interest rate-cutting cycle earlier in the year. The information came after President Trump expanded tariffs to include the Philippines, Iraq, and several other nations on August 1st, in addition to hinting at tariffs on larger trading partner Brazil. These actions were accompanied by proposed tariffs: 50% on copper, levies on semiconductors, and 200% on pharmaceutical goods after a designated grace period. In the corporate sector, technology stocks spearheaded the gains, with Nvidia, Broadcom, Alphabet, and Meta each climbing around 2%. However, Apple saw a 1% decline following trade advisor Navarro's suggestion of potential tariffs specifically targeting the company.