Overview
- U.S. equities pulled back from records as the S&P 500 fell 1.0%, the Nasdaq slid 1.6%, and the Dow dipped 0.2%, according to closing figures.
- The Federal Reserve cut rates by 25 basis points to 3.75%–4.00%, and Chair Jerome Powell said a December reduction is “not a foregone conclusion,” with CME FedWatch putting the odds near the low 70% range.
- Megacap tech diverged after results as Meta sank about 12% on heavier AI-related spending plans and a reported bond sale, Microsoft fell more than 2%, and Alphabet rose roughly 5%–9% after topping $100 billion in quarterly revenue.
- President Trump said his meeting with China’s Xi produced steps to lower average U.S. tariffs to 47%, extend rare-earth export flexibility for a year, and tighten fentanyl-related controls, though market reaction was muted and Chinese confirmation remained limited.
- Global markets echoed the risk reset, with European benchmarks weaker and India’s Sensex down 593 points and the Nifty off 176, as investors reassessed AI capex payoffs and the near-term easing path.