Wall Street was little changed at open for the trading session on Wednesday, July 30, as investors awaited the Federal Reserve’s upcoming policy decision.
At 7.45 p.m. IST or 10.15 a.m. ET, the S&P 500 had edged up 0.1 percent, the Nasdaq Composite gained 0.2 percent, and the Dow Jones Industrial Average slipped by 17 points, or 0.1 percent.
Even though the U.S. reported a strong increase in GDP for the second quarter, with the economy growing at three percent as against expectations of 2.3 percent, it failed to lift Wall Street's sentiment. Investors remained focused on the primary triggers of interest rate expectations and earnings releases.
On the macroeconomic front, the dollar strengthened and U.S. Treasury yields moved higher following the GDP release. President Trump called the economic data “way better than expected” and repeated his push for interest rate cuts.
Further, President Trump announced a 25 percent tariff on Indian goods, along with penalties linked to India’s continued imports of Russian oil and defense equipment. The news sent the Indian rupee lower against the dollar.
Trump also warned that the Friday, August 1 deadline for the imposition of reciprocal tariffs on countries without finalized trade deals, such as Canada, Mexico, and South Korea, would not be postponed.
The previous session ended in the red, snapping a streak of six consecutive record closes for the S&P 500. On Tuesday, the benchmark index dropped 0.3 percent, while the Dow and Nasdaq Composite declined by roughly 0.5 percent and 0.4 percent, respectively.
The main U.S. indexes came under pressure as uncertainty resurfaced around trade negotiations with China. Talks between American and Chinese officials wrapped up without clear progress, and it remains unclear whether the planned increase in tariffs on Chinese goods will be delayed. According to U.S. negotiators, any such extension still awaits President Donald Trump’s approval.
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