Major Takeaways:
Wall Street slipped after hitting fresh highs, with tech leaders like Nvidia and Microsoft taking losses.
The Fed is almost guaranteed to cut rates, but Powell’s press conference will shape expectations for more moves ahead.
U.S.–China talks delivered a TikTok framework deal, but bigger trade fights — including tariffs — remain unresolved
Stocks Cool Off as Fed Preps First Rate Cut and U.S.–China Talks Push TikTok Deal
Wall Street hit the brakes Tuesday after a record-setting run, with investors cashing out gains and waiting for the Federal Reserve’s big move. All eyes are on whether Jerome Powell and the Fed will cut interest rates — a shift that could ripple from your savings account all the way to mortgage payments and credit card interest.
Urban City Article (Full Story):
Stocks dipped on Tuesday, reminding investors that what goes up eventually pauses for air. The S&P 500 slipped 0.1% after setting a fresh record, while the Dow Jones dropped 185 points. Tech names that normally carry the bull market — Nvidia, Palantir, Microsoft, and Google parent Alphabet — all cooled off.
The pullback comes as the Federal Reserve kicked off a two-day meeting expected to deliver its first rate cut since December. Traders are betting heavily on a quarter-point cut, basically a sure thing at this point, according to CME’s FedWatch tool.
But the real show comes after the announcement, when Fed Chair Jerome Powell steps to the mic. Investors, businesses, and yes — regular folks — will be hanging on his words to see if more cuts could follow this year or next. For households, a rate cut can lower borrowing costs, but it can also signal that the economy may be slowing.
The meeting also follows the Senate’s confirmation of Stephen Miran, President Trump’s pick to join the Fed, stirring even more speculation on politics’ role in shaping monetary policy.
Meanwhile, trade talks between the U.S. and China are back in motion. Treasury Secretary Scott Bessent says the Chinese “now sense that a trade deal is possible” after two days of negotiations. The talks produced a framework deal on TikTok, which means the app — wildly popular with Gen Z and Black creators alike — will stay live in the U.S. Oracle is set to play a role in enabling TikTok, giving its stock a slight bump.
Still, the bigger trade fight isn’t over. Plans for new tariffs in November are looming, and U.S. Trade Representative Jamieson Greer said broader discussions were “deferred” so both sides could hammer out TikTok first.
For now, the message is clear: markets are waiting, watching, and bracing for what Powell and the Fed decide to do next.
