FX.co ★ US Stocks Turn Negative

On Wednesday, U.S. stocks retreated from their record highs after Federal Reserve Chairman Jerome Powell indicated that the central bank might keep interest rates steady at their upcoming meeting. The Dow Jones Industrial Average dropped by 150 points, the S&P 500 edged down by 0.3%, and the Nasdaq 100 remained mostly unchanged. The Federal Reserve implemented a rate cut of 25 basis points, with two members dissenting from opposite viewpoints, and announced plans to conclude its balance sheet reduction in December. Despite this, both stocks and bonds experienced a significant sell-off following Powell's comments, which cast doubt on a potential rate cut in December due to the Federal Open Market Committee's vigilance regarding rising inflation amid strong economic growth. Consumer defensive stocks and healthcare sectors bore the brunt of the losses, although companies reporting earnings showed gains. Notably, Caterpillar, Verizon, CVS Health, and Fiserv experienced a sharp rise after releasing their third-quarter earnings. Additionally, Nvidia's stock surged by 3%, surpassing a market capitalization of $5 trillion, after President Trump hinted that he might consider permitting Blackwell chip exports to China. Results from Microsoft, Alphabet, and Meta are anticipated following the close of trading.