US markets experienced a mixed day as the Federal Reserve kept interest rates unchanged at 4.25%-4.5%. While the Dow lost 171.71 points and the S&P 500 dipped slightly, the Nasdaq edged up by 31.38 points, proving that tech stocks are still in the spotlight. 📊
Most major sectors of the S&P 500 slipped, with materials and real estate taking the hardest hit, down by 1.99% and 1.43% respectively. Meanwhile, utilities and technology enjoyed modest gains, with tech stocks sparking optimism among investors.
The decision came amid internal debates at the Federal Open Market Committee. The panel voted 9 to 2 to hold steady, even as dissenters like Fed Vice Chair for Supervision Michelle Bowman and Fed Governor Christopher Waller advocated for rate cuts. This marked a rare moment of multiple dissenters since 1993.
Adding a twist to the day, data from the US Department of Commerce showed the economy grew at an annualized rate of 3% in Q2, surpassing economists' expectations of 2.3%. Even major tech names like Apple, Tesla, Amazon, and Meta saw slight drops, while chipmakers such as Nvidia and Broadcom led gains with roughly 2% increases. The market's mixed signals hint at a cautious yet hopeful outlook as investors weigh the pace of growth against potential inflation pressures. 🚀
Reference(s):
cgtn.com
