Wall Street Ends Mixed as Fed Holds Rates, Inflation Concerns Persist

U.S. stocks experienced volatility as investors digested a mix of economic data, Federal Reserve signals, and geopolitical developments. Federal Reserve Chair Jerome Powell maintained interest rates but tempered expectations of a September cut, noting inflation remains elevated and the economy is only modestly restrained by current policy, which caused market expectations for a rate cut to fluctuate. The second-quarter GDP beat expectations, though underlying data showed weak domestic demand and consumption, leading to cautious investor sentiment despite some sectors like technology showing resilience. Wall Street was further influenced by ongoing trade negotiations between the U.S. and China, a recent U.S.-EU trade deal reducing tariffs, and concerns over potential tariffs on Indian exports. Meanwhile, geopolitical tensions in the Middle East, including a fragile Israel-Iran ceasefire and U.S. strikes on Iran, added to market uncertainty, even as tech giants like Nvidia hit record valuations. The Dow and S&P 500 showed modest declines or flat performance, while the Nasdaq gained slightly, reflecting a mixed but cautious market outlook ahead of upcoming earnings reports from major technology firms.