Stocks were muted on Wednesday as Wall Street braced for the Federal Reserve’s interest rate decision and policy outlook later in the day.
The S&P 500 inched up 0.1%, while the Nasdaq Composite slipped 0.1%.
The Dow Jones Industrial Average fared better, rising 158 points, or 0.3%.
Nvidia fell more than 1% after the Financial Times reported that China has barred domestic tech firms from purchasing its chips, a move that could weigh on the chipmaker’s growth prospects in one of its largest markets.
The Fed decision later today
The Federal Reserve is set to deliver its long-awaited rate decision at 2 pm ET, followed by Chair Jerome Powell’s press conference at 2:30 pm ET. Markets are fully convinced that the central bank will cut rates for the first time this year.
According to CME’s FedWatch tool, traders are pricing in a 100% probability of at least a 25-basis-point reduction.
The bigger question is what comes next, and Powell’s remarks, along with the Fed’s Summary of Economic Projections and its closely watched “dot plot,” will be scrutinised for clues on the pace and extent of future cuts.
Investors will also be watching for signs of division within the committee.
At the July meeting, Governors Christopher Waller and Michelle Bowman dissented, highlighting differing views on policy direction.
This time, Governor Lisa Cook will be able to cast her vote after a federal appeals court blocked President Donald Trump’s attempt to remove her.
Governor Stephen Miran, confirmed by the Senate earlier this week, will also take part in the decision.
US tech giant announce heavy investments in the UK
Major US tech firms pledged more than $40 billion in new investments in the UK, underscoring the country’s push to become a global hub for artificial intelligence.
Microsoft said it will spend $30 billion on infrastructure and operations tied to AI, while Nvidia, Google, OpenAI, and Salesforce also committed multi-billion-dollar investments.
Millions of patients receiving life-saving treatments faster.
Families getting access to cleaner, more reliable energy.
Local communities and businesses seeing greater opportunities, more jobs, more growth.
That’s what the new UK-US tech partnership will deliver.
The announcements coincided with US President Donald Trump’s visit to Britain, where he is expected to sign an agreement with Prime Minister Keir Starmer centered on technological collaboration.
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