Wall Street Ends Winning Streak as Fed Kicks Off Key Meetings
The Fed kicked off its two-day meeting Tuesday and is widely expected to cut interest rates by 25 basis points on Wednesday.
Quick overview
- New York stocks experienced a pullback as the Federal Reserve began its two-day policy meeting, with Trump urging for immediate rate cuts.
- The Dow Jones Industrial Average fell 0.3%, while the S&P 500 and Nasdaq Composite both declined by 0.1%.
- U.S. retail sales rose 0.6% in August, surpassing expectations amid concerns over a weakening labor market.
- Optimism surrounding U.S.-China trade talks increased, with a framework agreement for TikTok ownership confirmed.
New York stocks pulled back from record levels on Tuesday, September 16, as the Federal Reserve began its two-day policy meeting—one that former President Trump publicly weighed in on earlier in the day.
“POWELL MUST CUT RATES—NOW, AND BY MORE THAN HE PLANNED,” Trump wrote on his Truth Social platform Tuesday morning, arguing that such a move would lift the housing market, which has shown signs of weakness for months.
Against this backdrop, the Dow Jones Industrial Average slipped 0.3% to 45,758.27 points; the S&P 500 edged down 0.1% to 6,607.02; and the Nasdaq Composite lost 0.1% to 22,333.96.
U.S. Retail Sales Beat Expectations in August
Retail sales in the U.S. rose more strongly than expected in August, driven in part by e-commerce demand, even as concerns linger over a weakening labor market heading into the final weeks of the third quarter.
On a monthly basis, retail sales in the world’s largest economy climbed 0.6%, matching July’s upwardly revised growth and beating economists’ forecasts for a 0.2% increase, according to Commerce Department data released Tuesday. Retail sales primarily reflect goods spending and are not adjusted for inflation.
The Fed kicked off its two-day meeting Tuesday and is widely expected to cut interest rates by 25 basis points on Wednesday. The decision will be accompanied by updated economic projections, with many investors betting on three cuts before year-end.
Trade Talks Between the U.S. and China
Risk appetite also improved on renewed optimism surrounding U.S.-China trade talks taking place in Madrid.
On Monday, Trump posted that the “big trade meeting in Europe… went VERY WELL!” He added that an agreement had also been reached on a “certain” company that young Americans wanted saved, referring to TikTok.
Treasury Secretary Scott Bessent confirmed that a framework agreement had been reached for U.S. ownership of TikTok. Trump and Chinese President Xi Jinping are scheduled to meet Friday to finalize the details.
Corporate Highlights on Wall Street
- Ford fell 0.6% after announcing plans to cut up to 1,000 jobs at its electric vehicle plant in Cologne, Germany, citing weak demand.
- Google slipped 0.2% after revealing plans to invest £5 billion ($6.8 billion) in the U.K. ahead of President Trump’s state visit, which is expected to feature several trade and collaboration agreements.
- Oracle rose 1.5% following reports from CBS News that it is part of a consortium that would allow TikTok to continue operating in the U.S. if a U.S.-China framework agreement is finalized.
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