Stocks were mixed on Wednesday as investors await the Federal Reserve’s decision on interest rates. The S&P 500 was trying to avoid a third consecutive day of losses.
The Dow was up 180 points, or 0.45%, midday Wednesday. The S&P 500 hovered around the flatline and the Nasdaq Composite slid 0.4%. Stocks dipped lower as Treasury Secretary Scott Bessent, during his annual testimony to Congress, said that trade talks with China this weekend will be preliminary.
Investors this week are focused on Fed Chair Jerome Powell’s remarks this afternoon and potential updates in trade negotiations between the US and China, as well as the US and other countries.
Markets are sensitive to trade policy announcements, and Wall Street, like the Fed, is largely in “wait-and-see mode” regarding how President Donald Trump’s tariffs are impacting the economy and markets.
“We’re at an early stage of seeing the impact of the tariffs on real economics,” Paul Donovan, chief economist at UBS Global Wealth Management, said at a media event on Wednesday. “It’s going to filter through over the course of the next six months.”
“The policy has been quite erratic,” Donovan said. “I think we avoid some of the worst-case scenarios, but undoubtedly we are going to be looking at a slower pace of growth than had previously been anticipated this year.”
The yield on the 10-year Treasury note on Wednesday edged lower, to 4.29%. The US dollar slightly strengthened against other major currencies.
“Greed” was the sentiment driving markets for the third day in a row, according to CNN’s Fear and Greed index. The index was staunchly in “extreme fear” and “fear” since the end of February before surging into “greed” this month.
These stocks were making moves today:
Disney (DIS) was up more than 10%, lifting the Dow higher, after the company posted strong earnings and announced a new theme park in Abu Dhabi.
DoorDash (DASH) slid more than 5% one day after the company announced it would acquire UK-based food delivery service and rival Deliveroo, as well as hospitality company SevenRooms.
Marvell Technology (MRVL), a semiconductor chip maker, sank 10% after the company postponed its investor day due to economic uncertainty.
