Stock market today: Wall Street slips after the Federal Reserve keeps interest rates steady

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Under more favorable rates in September.

The S&P 500 went down by 0.5% after the Fed made their decision, which was widely expected. The Dow Jones Industrial Average dropped 137 points, or 0.3%, and the Nasdaq composite also fell 0.5%.

And companies to lend to, but the downside is they could also fuel further inflation.

Federal Reserve Chairman Jerome Powell stated after the ruling that the bank might lower interest rates if inflation were to slow further or if the job market were to suddenly deteriorate. However, “at this time, we don't see that happening, and we consider things to be in an excellent position for policy and the economy, and so we feel like there's no need to rush to make any changes.”

While Wall Street generally favors low interest rates, "we will still focus on why the Fed is unlikely to cut interest rates anytime soon, particularly because of a healthy economy and robust labor market, which should lead to solid increases in corporate earnings," said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

boom.

This development has raised nearly fundamental questions for some in the AI industry after stating that it has created a large-language model that can rival the world's top performers without needing the most advanced computer chips.

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The company, whose stock had almost become a symbol of the AI boom, fell 4% on Wednesday, after plummeting nearly 17% on Monday and then surging nearly 9% on Tuesday. It was a major factor in the S&P 500's decline.

Nvidia accounted for more than a fifth of the total return of the S&P 500 last year.

The stock jumped 8.1% after the company beat analyst expectations with a stronger profit in the most recent quarter. CEO Brian Niccol stated that the chain plans to trim its food and beverage options by 30% this year to streamline operations and accelerate service, as part of its strategy to revamp the company.

T-Mobile US rose 6.3% after surpassing Wall Street's forecasts for both earnings and sales in the last quarter of 2024. The company also stated that it anticipates adding between a net 5.5 million and 6 million postpaid customers this year.

Brinker International shot up by 16.3% after the company behind Chili's restaurants reported better-than-expected results. Chancellor Kevin Hochman said Chili's restaurants are attracting new customers, and the existing customers are visiting more frequently.

A Republican-controlled Congress may relax restrictions on the industry.

Frontier Airlines plans to merge with Spirit Airlines, which filed for bankruptcy protection at the end of last year. The proposed deal will include newly issued Frontier debt and common stock.

Trump Media & Technology Group rose after announcing it will start providing financial services through a partnership with Charles Schwab. TMTG said more details will be released later this year, and what had been an important gain of more than 10% has now shrunk to a 6.8% increase.

On the losing side of Wall Street was Danaher, which declined by 9.7% following a report that the life sciences, biotechnology, and diagnostics company's latest quarter results did not meet analysts' expectations.

Overall, the S&P 500 dropped 28.39 points to 6,039.31. The Dow Jones Industrial Average lost 136.83 points, closing at 44,713.52, and the Nasdaq composite slid 101.26 points to 19,632.32.

The yield on the 10-year Treasury note stayed at 4.53% as of Tuesday, the same as it was late in the afternoon.

In overseas stock markets, various indexes had mixed results in Europe. ASML's stock surged 5.6% in Amsterdam after it announced increased revenue due to high demand for its sophisticated chipmaking equipment.

In Asia, where many markets were shut for holidays, Japan's Nikkei 225 climbed 1%.

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The AP news report was contributed to by writers Matt Ott and Zimo Zhong.