Despite renewed political pressure to lower borrowing costs, Powell has signaled a patient approach. As of now, expectations for a rate cut remain focused on later this year.
Which Dow Stocks Are Pressuring the Index?
Declines in Nike (-2.22%), Chevron (-1.23%), and Procter & Gamble (-1.10%) pulled the Dow into the red. Financials were mixed, with JPMorgan gaining 0.73% and Visa dipping 2% despite strong results. Caterpillar led Dow advancers, up 0.78%. Energy stocks dragged on the broader tape, down 1.09% as crude prices softened. Consumer Staples and Materials also underperformed, while Technology and Utilities showed modest strength.
Outside the Dow, Starbucks surged 5% on stronger-than-expected revenue, boosting confidence in its turnaround strategy. The pop offered a bright spot in an otherwise rangebound tape, as traders remain selective ahead of tech earnings.
How Are Traders Reacting to the GDP Surprise?
Second-quarter U.S. GDP rose at a 3% annual rate, well ahead of the 2.3% estimate. But the beat did little to lift sentiment in early trade. Most focus remains locked on the Fed and geopolitical developments. U.S.–China trade negotiations have stalled, with no clarity yet on whether planned tariff increases will be delayed. President Trump reaffirmed a hard deadline for Friday and also moved to impose a 25% tariff on Indian imports.
What’s the Early Read for the Rest of the Session?
With the Fed decision hours away, the session could remain subdued until Powell speaks. Any dovish shift could spark upside, especially in tech and growth names.
Traders are also watching for earnings from Microsoft and Meta after the close.