Stocks Slip Worldwide as Fed Decision, Tech Earnings Loom

U.S. equities retreated from record territory on Tuesday, with the S&P 500 losing 0.29% to 6,371.34, the Nasdaq Composite down 0.35% to 21,103.61 and the Dow Jones Industrial Average off 193.87 points, or 0.45%, to 44,643.69. Disappointing results and outlooks from UnitedHealth, Boeing and Merck weighed on the Dow, while Whirlpool tumbled after slashing its full-year profit forecast and dividend. The pullback ended a six-session winning streak for the S&P 500 and came as investors awaited Wednesday’s Federal Reserve policy statement. Economists broadly expect the Fed to leave its benchmark rate unchanged at 4.25%-4.50%, but Chair Jerome Powell’s remarks will be scrutinised for clues on the timing of possible rate cuts later this year. Benchmark 10-year Treasury yields slipped to about 4.33%, the lowest in almost four weeks, reflecting the cautious mood. Nervousness was evident across regions. European bourses inched lower and Asian indexes were mixed after U.S.-listed futures traded flat overnight. Market sentiment was further damped by the conclusion of U.S.–China trade talks without a substantive agreement, leaving a 12 August deadline for the expiry of a tariff truce in place. Attention now turns to a heavy slate of technology earnings, with Microsoft and Meta reporting after Wednesday’s close, followed by Apple and Amazon on Thursday. Given their outsized market capitalisations, investors say the megacap results could set the tone for the remainder of the earnings season and determine whether U.S. stocks resume their advance.