US stocks showed mixed movements after Federal Reserve (Fed) Chairman Jerome Powell eased expectations that the central bank may be ready to cut interest rates in September.
In a statement this morning, the FOMC kept interest rates unchanged as expected at 4.50%.
Powell said the labor market remained strong and inflation remained high despite the decision being accompanied by differences of opinion among members.
Powell also said it was too early to make a decision on a rate cut at the September meeting, while stressing that current monetary policy remains tight without affecting economic growth.
The Dow Jones Industrial Average fell 0.38% to 171.71 points, the S&P 500 declined 0.12% to 7.96 points, while the technology-focused Nasdaq rose 0.15% to 31.38 points.
In other news, the ADP preliminary employment report showed private sector payrolls rose by 104,000 in July, beating expectations for 75,000 – an early indication ahead of the government’s official report due on Friday.
Meanwhile, shares of megacap companies Microsoft and Meta Platform jumped more than 6% after reporting strong quarterly results.
Starbucks posted better third-quarter sales despite its shares falling 0.2%, while Hershey rose 1.4% after the chocolate and snack company reported results that beat estimates.
Investors are now awaiting earnings reports from Amazon and Apple, due on Thursday.
Volume on US exchanges hit $17.66 billion compared to a 20-day average of $17.87 billion.
