FOMC Minutes Didn’t Give Dow Jones (DJIA) A Reason to Resume Uptrend
The FOMC and FED chair Powell failed to ignite a rally or a fall today, but the Dow Jones is still trapped between MAs, waiting for an...
Quick overview
- U.S. equity markets closed lower, with major indices down approximately 0.5% to 0.6% amid a lack of strong directional momentum.
- The industrial sector showed resilience, while technology stocks remained neutral, with Palantir Technologies gaining due to optimism around AI integration.
- Consumer stocks exhibited stability, indicating a steady outlook for spending despite ongoing inflation and interest rate concerns.
- The Federal Reserve's recent minutes revealed a cautious stance, highlighting increased economic uncertainty and a wait-and-see approach to policy adjustments.
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The FOMC and FED chair Powell failed to ignite a rally or a fall today, but the Dow Jones is still trapped between MAs, waiting for an excuse to move.
Markets End Lower Despite Sector Rotation
U.S. equity markets concluded the trading day with losses across the major indices, despite a patchwork of gains and declines across individual stocks and sectors. The major US indices closed lower ahead of Nvidia earnings which leaned on the positive side, sending NVDA higher. The declines are consistent across the major indices around -0.5% to -0.6% lower.
While overall sentiment remained subdued, the industrial sector emerged as the day’s outperformer, signaling resilience in traditionally cyclical areas of the economy.
Technology Stalls, But AI Hopes Keep Palantir Afloat
Technology shares reflected a broadly neutral tone, with little directional conviction seen among the heavyweights. Microsoft (MSFT) and Nvidia (NVDA) each posted modest losses of 0.24%, suggesting investors are taking a more defensive stance amid uncertainty around valuations and interest rate expectations.
However, Palantir Technologies (PLTR) bucked the trend, gaining 1.34% on the day. The move reflects growing optimism around the company’s continued integration of artificial intelligence into enterprise and defense solutions, a narrative that continues to attract investor attention despite the sector’s broader malaise.
Consumer Names Steady as Spending Outlook Holds
In consumer-facing industries, Amazon (AMZN) edged down by 0.6%, while Home Depot (HD) dipped just 0.16%. These relatively muted moves point to a more stable outlook for consumer spending, even as concerns about inflation and interest rates linger. The cyclical consumer space remains positioned for resilience, though the absence of strong upside momentum suggests investors are waiting for clearer macro signals.
US Equity Market Wrap – May 28, 2025
- The Dow Jones Industrial Average closed down 244.95 points, a decline of 0.58%, ending the session at 42,098.70.
- The S&P 500 Index slipped 32.99 points, or 0.56%, to settle at 5,888.55, reflecting broad-based weakness.
- The Nasdaq Composite dropped 98.22 points, down 0.51%, finishing the day at 19,100.94, weighed by modest tech sector losses.y
We also had the May 2025 FOMC minutes, which highlighted a growing sense of caution at the Fed, with policymakers prepared to hold steady amid a murky economic outlook and conflicting risks of inflation and labor market weakness.
FOMC Minutes – May 2025: Fed Maintains Cautious Stance Amid Rising Uncertainty
- The Federal Reserve emphasized it is well positioned to wait for more clarity on inflation and overall economic conditions before adjusting policy.
- Uncertainty surrounding the economic outlook has increased, prompting participants to agree on a more cautious approach to monetary policy.
- Risks of both higher inflation and rising unemployment were acknowledged as having grown since the previous meeting.
- Almost all participants raised concerns that inflation may be more persistent than initially expected.
- The minutes reflect a general view that tradeoffs could become more difficult if inflation remains stubborn while the growth and employment outlooks deteriorate.
- Participants agreed that economic uncertainty is unusually elevated, warranting patience in decision-making.
- The Fed staff downgraded GDP growth projections for 2025 and 2026 compared to their March estimates, reinforcing the case for a wait-and-see approach.
Conclusion: US stocks ended lower across the board on Tuesday, with the Dow, S&P 500, and Nasdaq each posting losses of over 0.5%. The pullback appears tied to profit-taking and caution ahead of upcoming economic indicators, as investors balance optimism over earnings with concerns around inflation persistence and Federal Reserve policy direction.
Dow Jones Live Chart
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