FX.co ★ US Stocks Swing Lower

On Thursday, U.S. stocks experienced a downturn, retracting some of the gains from the previous day. This volatility arose as investors reconsidered potential economic risks and the Federal Reserve's possible response to increased inflation and reduced growth prospects. The S&P 500 and the Nasdaq 100 each fell by 0.5%, while the Dow declined by approximately 50 points. The initial boost in equities followed the Federal Reserve's decision to keep interest rates unchanged, aligning with expectations. Fed Chairman Jerome Powell minimized fears that President Trump's tariffs could spur inflation, stating their effects would be temporary. Nonetheless, the Federal Open Market Committee (FOMC) revised its growth projections downward and indicated higher unemployment rates, prompting markets to anticipate three interest rate cuts by the Fed this year. This is an increase from the two rate cuts anticipated prior to the FOMC meeting, aligning with the latest median projections from the Committee. In the tech sector, Broadcom saw a 3% drop, leading a decline in chip stocks, while Accenture shares plummeted by 8%. Conversely, U.S.-listed shares of Pinduoduo (PDD) climbed 3% after releasing their earnings report. Investors awaited results from Micron and Nike, anticipated after market close.