Stocks Slip From Records as Powell Stays Vague on October Rate Cut Outlook – US Market Wrap

Wall Street traders drove stocks lower from all-time highs, with Federal Reserve Chair Powell giving no hints about whether he would support a rate cut at the central bank’s October meeting. Bonds held gains.

Following a string of records, equities paused amid a decline in big tech. Powell said the labour market and inflation outlooks are uncertain, reiterating his view that policymakers will face a difficult road ahead as they consider further interest-rate cuts.

Following months of intense pressure from the White House to reduce borrowing costs, Fed officials cut their benchmark interest rate by a quarter percentage point last week and plan two more cuts this year.

The S&P 500 fell 0.5%, with Amazon and Nvidia leading losses among megacaps. Ten-year yields fell four basis points, to 4.11%. The dollar fluctuated. Gold held the record. Oil prices rose amid tensions between NATO and Russia.

Some policymakers are becoming more concerned about growing labour market risks, while others are primarily concerned about the possibility that tariffs and other policies will drive above-target inflation higher.

Fed Governor Bowman said officials must act decisively to lower interest rates as the labour market weakens. Fed Bank of Atlanta President Bostic said he expects more inflation, echoing his Chicago counterpart Goolsbee.