Dow components turned negative in afternoon action Wednesday after Federal Reserve Chairman Jerome Powell indicated the Fed may not be ready to cut interest rates as expected. Meanwhile, Magnificent Seven leaders Meta Platforms and Microsoft soared after results on the stock market today.
By the closing bell, the Dow Jones Industrial Average had lost 171 points or 0.4%. Up for much of the day, the S&P 500 reversed and finished 0.1% lower. But the tech-heavy Nasdaq composite erased late losses and managed a 0.2% gain.
The small-cap Russell 2000 index fell 0.5%. In the bond market, the 10-year Treasury yield ticked higher to 4.38%. Oil rose with West Texas intermediate futures trading at $70.23 a barrel.
Volume on the New York Stock Exchange turned higher while it remained lower on the Nasdaq compared with the same time on Tuesday. Advancers lagged decliners nearly 3-to-1 on the NYSE and more than 2-to-1 on the Nasdaq.
Much of Wednesday's reversal came after Powell signaled reluctance to cut interest rates at the Fed's September meeting. Markets were banking on a rate cut at that time, but odds fell to 45% late Wednesday. At one point, the Dow was down nearly 400 points but recovered somewhat leading into the close.
In stocks, Meta reported earnings of $7.14 per share on sales of $45.5 billion. That beat estimates of $5.88 a share on sales of $44.8 billion. Shares jumped more than 10% in after-hours trade.
Microsoft also reported earnings, with profits coming in at $3.65 per share on sales of $76.4 billion. Analysts called for $3.37 a share in earnings and $73.9 billion in sales. The stock surged more than 7% after-hours.
3:21 p.m. ET
Powell Takes 'Wait And See' Approach
The Fed left rates unchanged, and Powell indicated the central bank may not be ready to cut interest rates at its September meeting. Powell's "wait and see" stance pressured indexes.
He said the Fed is well-positioned to respond in a timely way to economic changes. Service inflation has eased while tariffs have pushed up prices on some goods.
But he noted the effect of higher tariffs remains to be seen and could be a one-time risk or result in a more persistent upward pressure on prices. A rate cut in September would depend on more data, Powell said.
Uncertainties remain even as there is more certainty surrounding the several tariff rates on goods entering the U.S., Powell said.
Microsoft, Meta Soar On Earnings After Stocks Mixed On Powell
2:22 p.m. ET
Fed Leaves Rates Unchanged
As expected, the Fed kept rates unchanged at 4.25%-4.5% on Wednesday. The committee noted that "growth of economic activity moderated in the first half of the year."
1:47 p.m. ET
Robinhood, Carvana Earnings Loom
In stocks, Robinhood rose ahead of its earnings report, due after market close. Estimates for second-quarter earnings sit at 31 cents per share on $914.6 million in sales. Robinhood has an ideal Composite Rating and Relative Strength Rating of 99.
Robinhood is on the IBD 50 list of growth stocks as well as on the IBD Leaderboard Watchlist.
Carvana has been trading tightly and offers a buy point of 364 headed into earnings Wednesday. Carvana stock has a Relative Strength Rating of 96 and a Composite Rating of 97.
12:15 p.m. ET
Earnings Movers: Check Point, Seagate Sell Off
Earnings took a bite of more than 12% from Check Point Software. Shares fell below their 200-day moving average and undercut an 18-week base.
For its June quarter, Check Point said earnings were $2.37 per share on sales of $665 million. That beat views of $2.36 a share on sales of $662 million. But billings of $642 million missed estimates of $649 million.
Seagate Technology tumbled more than 4% after announcing earnings of $2.59 per share on revenue of $2.4 billion for its fourth quarter. Its outlook for $2.5 billion in sales for the current quarter came in slightly lower than expected.
11:14 a.m. ET
Stock Market Today: Pending Home Sales Fall
Pending home sales fell 0.8% in June month-on-month, according to the National Association of Realtors. Economists had anticipated an increase of 0.2%.
Also, the Mortgage Bankers Association's Mortgage Applications Composite Index fell 3.8% for the week ended July 25 after a 0.8% increase in the prior week.
Elsewhere, President Donald Trump posted on Truth Social that tariffs of 25% will be imposed on goods from India starting Aug. 1.
10:23 a.m. ET
Earnings: Humana, GE Healthcare, American Electric
In stocks, Humana reported second quarter earnings of $6.27 per share on sales of $32.4 billion, topping estimates of $5.92 in earnings per share on sales of $31.9 billion. Shares jumped nearly 6%, rebounding from their 50-day moving average.
Also in health care, GE Healthcare fell below its 50-day moving average with a loss of nearly 9% despite its strong report for the June-ended quarter. Earnings of $1.06 per share exceeded views of 92 cents per share and sales of $5 billion edged past estimates of $4.97 billion.
American Electric Power jumped 4% and cleared a buy point of 110.48 after its June-ended quarterly results. Earnings came in at $1.43 per share on sales of $5.1 billion while the utility company maintained its 2025 earnings outlook of $5.85 per share at the midpoint.
Stock Market Today: Palo Alto Tumbles Further On Deal News
Palo Alto Networks extended losses on news that the cybersecurity company will buy CyberArk Software. Shareholders of CyberArk stock will receive 2.2 shares of Palo Alto Networks stock and $45 in cash for each share they hold of CyberArk Software.
Palo Alto stock plummeted below its 200-day moving average Wednesday with a loss of nearly 8% after undercutting its 50-day moving average on Tuesday. Meanwhile, shares of CyberArk gave back some of Tuesday's hefty gains.
9:44 a.m. ET
Meta, Microsoft Earnings On Deck
Magnificent Seven stocks Meta Platforms and Microsoft are set to report second-quarter earnings results after the market close Wednesday.
Meta stock gained 0.4% Wednesday morning, attempting to find support around its 50-day moving average, a key level to watch. Shares are extended above a 662.67 cup-with-handle entry.
Software giant Microsoft edged higher early Wednesday. The Dow Jones component reached a record high Friday.
9:07 a.m. ET
SoFi Stock Plunges On Stock Offering
SoFi Technologies plunged nearly 8% after the company announced a public offering of $1.5 billion of its common stock. Goldman Sachs will act as underwriter of the offering which involves the purchase of an additional 15% of shares of common stock, SoFi said in a statement.
SoFi shares hit a new high Tuesday after the fintech posted strong results that topped Wall Street estimates. SoFi also raised its 2025 revenue outlook.
8:37 a.m. ET
Stock Market Today: Jobs Data, GDP Beat Estimates
Early Wednesday, ADP said that private payrolls increased by 104,000 in July, exceeding estimates. Private payrolls were seen up by 75,000 in July, after falling 33,000 in June, according to Econoday.
Meanwhile, the Commerce Department said that second-quarter GDP showed growth of 3%. That came in above the 2.5% estimate from Econoday.
8:07 a.m. ET
Nvidia Gains On Price-Target Hike
Nvidia climbed 0.6% Wednesday morning after Morgan Stanley raised its price-target from 170 to 200, keeping an overweight rating due to strong demand for the company's Blackwell chips.
Shares of the artificial intelligence chipmaker hit a record high in regular-session trading Tuesday before reversing lower. Nvidia stock touched an all-time high of 179.38 on Tuesday.
Earnings Movers: Booking, Visa
Key earnings movers include Booking Holdings, Visa, Seagate Technology, Starbucks and Qorvo, along with AI infrastructure play Vertiv.
Booking stock declined 2%, while Visa shares sold off more than 2%. Seagate stock tumbled in excess of 6%, as Starbucks jumped more than 5%. Finally, Qorvo surged more than 10% as Vertiv stock rallied nearly 5% in premarket trading.
Stock Market Today: Fed Decision, Powell Comments
The Federal Reserve's two-day policy meeting concludes Wednesday, with an interest rate decision at 2 p.m. ET, followed by Fed chief Powell's comments at 2:30 p.m. ET.
Markets are pricing in less than 3% odds of a rate cut on Wednesday, according to CME Group's FedWatch tool. But rate-cut odds jump to 62% for the Sept. 17 meeting. By then, the Fed will have July and August inflation data in hand, as well as jobs data for those two months.
Elsewhere, the APD employment report is due out at 8:15 a.m. ET. Private payrolls are seen up by 75,000 in July, after falling 33,000 in June.
Finally, the Commerce Department's second-quarter GDP is expected to show growth of 2.5%, compared with a drop of 0.5% in the first quarter. That report is due out at 8:30 a.m. ET
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