US stocks retreat as Fed holds steady on interest rates
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A TV station broadcasting US Federal Reserve chairman Jerome Powell, on the floor of the New York Stock Exchange, on Jan 29.
PHOTO: BLOOMBERG
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NEW YORK – Wall Street stocks finished lower ahead of a deluge of earnings from tech heavyweights as markets digested a Federal Reserve decision to keep interest rates unmoved.
The Fed, as expected, left its key lending rate unchanged, resisting pressure from President Donald Trump to continue with cuts in the first rate decision since his return to office.
Stocks did not move significantly after the decision or during a news conference with Fed chairman Jerome Powell.
“We’re looking at a major plethora of earnings data,” Mr Adam Sarhan, of 50 Park Investments, said of results later on Jan 29 from Meta, Tesla, and others.
The Dow Jones Industrial Average finished down 0.3 per cent at 44,713.52.
The broad-based S&P 500 declined 0.5 per cent to 6,039.31, while the tech-rich Nasdaq Composite Index dropped 0.5 per cent to 19,632.32.
The Jan 29 session extended a choppy trend this week after revelations about Chinese artificial intelligence firm DeepSeek pummelled Nvidia and other US stocks on Jan 27 before they rebounded on Jan 28. Nvidia fell 4 per cent on Jan 29.
Markets also digested congressional testimony from Mr Trump’s commerce secretary nominee, Mr Howard Lutnick, who touted the virtues of tariffs – a lingering source of unease for investors.
“The market knows tariffs are coming,” Mr Sarhan said. “We don’t know what the effect will be.”
Among individual companies, Starbucks shot up 7.8 per cent after reporting lower profits in results that still beat expectations. New chief executive Brian Niccol expressed confidence about restoring growth at the coffee chain.
Trump Media & Technology Group gained 7.3 per cent as it announced a venture with Charles Schwab, establishing a programme to promote “American First investment vehicles”. Schwab advanced 0.4 per cent. AFP
