U.S.Stocks Dip as Fed Minutes Highlight Policy Challenges
U.S.stocks took a hit on Wednesday following the release of the Federal Reserve’s May policy meeting minutes. The Dow Jones Industrial Average dropped 0.58%, or 245 points, while the S&P 500 and Nasdaq Composite fell 0.56% and 0.51%, respectively.
The Fed’s minutes revealed a cautious stance on monetary policy. They warned of “tough tradeoffs” if inflation continues. The document stated, “Participants agreed that economic uncertainty has risen, making a cautious approach necessary until the effects of policy changes become clearer.”
on the trade front, President Trump responded to the “TACO trade” term, which suggests he often delays tariff implementations. trump insists his tactics are part of a negotiation strategy,and trading partners like the EU are keen to reach agreements.
Consumer spending remains strong, as evidenced by positive earnings from key retailers. Abercrombie & Fitch Co. shares surged 14% after reporting strong first-quarter results. However,HP’s shares fell 15% due to missed earnings expectations and a gloomy outlook.
Nvidia’s shares rose in extended trading after beating estimates. The company reported EPS of 96 cents on $44.06 billion in revenue. Data center revenue grew 73% year-over-year, but export restrictions on chips to China led to a $2.5 billion loss in sales.
