US Stocks Fall with Dow Down 0.5%, S&P 500 and Nasdaq Retreat as Fed Holds Rates Steady, Dampening September Cut Hopes

US stock markets closed lower as investors reacted to a Federal Reserve decision to hold interest rates steady, dampening expectations for a rate cut in September. The Dow Jones Industrial Average fell nearly 0.5%, marking its third consecutive decline, while the S&P 500 and Nasdaq each dropped by roughly one-third of a percent, retreating from recent record highs. The market pullback followed some disappointing corporate earnings reports. Investors are now focused on upcoming Fed policy statements for further guidance on the timing of potential rate reductions.