Equities retreat as Powell dampens Fed Sept cut hopes
Wed July 30, 2025 4:31 PM
There was a lot of positive news today with the Fed reporting that the economy remained on good footing, two of the four remaining Mag 7’s put in good Q2 with the other two coming tomorrow, solid Q2 from a number of consumer firms pointed to shopper resilience, private payrolls came in way above forecasts, and Q2 GDP, after being negative in Q1, went right back to last year’s 3% level. But today, none of that mattered. Instead all eyes were on Powell when he announced this afternoon that it was too soon to comment on a September rate cut and that current policy, though modestly restrictive, was not holding the economy back. That is exactly not what the market wanted to hear.
So at 2:30 p.m. all three indexes took a very sizable dump, the Dow losing nearly 500 points in just ½ hour before beginning a rather vigorous comeback in the last 20 minutes to recover about half of the losses. Until 2;30, for most of the day, all indexes were running pretty close to flat so all the good news wasn’t really impressing anyone. But the fact that there was such a dramatic comeback in the last 20 minutes suggested we may see the impact of the good news on Thursday, especially if the other two Mag 7 companies come in strong. (And considering that, the panic selling aside, Powell said nothing we didn’t already well know.) At 17.6 billion, volume remains very close to the 4-week average of 17.8 billion.
DJ: 44,632.99 -204.57 NAS: 21,098.29
-80.29 S&P: 6,370.86
-18.91 7/29
DJ: 44,461.28 -171.71 NAS: 21,129.67
+31.38 S&P: 6,362.90
-7.96 7/30
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