Market Quakes: Fed’s Secrets Unveiled, Dow Plunges 245 Points!

U.S.Stocks Dip as Fed signals Caution on Monetary Policy

U.S. stocks closed lower on Wednesday following the Federal Reserve’s release of its May meeting minutes. The Dow Jones dropped by 0.58%, while the S&P 500 and Nasdaq Composite fell 0.56% and 0.51%, respectively.

The Fed’s cautionary tone hinted at potential “arduous tradeoffs” if inflation persists. The minutes stressed the need for a cautious approach considering economic uncertainties.They warned that persistent inflation could complicate the Fed’s dual mandate of stable prices and full employment.

Despite the Fed’s concerns, President Trump downplayed a “TACO trade” accusation, which suggested he frequently enough backs down on tariff threats. He defended his negotiation tactics and expressed confidence in reaching deals with partners like the EU.

On a brighter note, consumer spending showed resilience. Abercrombie & Fitch Co. saw a 14% share surge after reporting strong first-quarter results and predicting 3% to 6% full-year net sales growth.Conversely, HP’s shares fell 15% due to missed earnings and a gloomy outlook caused by tariff-related costs.

Nvidia’s stock rose in after-hours trading,beating earnings expectations with EPS of 96 cents and $44.06 billion in revenue.Data center revenue spiked 73% year-over-year, though the company lost out on $2.5 billion in sales due to China-related chip export restrictions.