US stocks mostly fall as Fed avoids dovish shift
Traders working on the floor of the New York Stock Exchange, in New York City, on July 30.
NEW YORK - Wall Street stocks finished mostly lower July 31 after the Federal Reserve kept interest rates flat and refrained from signaling it will soon cut interest rates.
The Fed, as expected, held interest rates steady, despite relentless pressure from US President Donald Trump for an interest rate cut.
In a press conference, Fed chairman Jerome Powell emphasised future monetary policy decisions would depend on economic data.
'Powell sounded more hawkish than what markets were hoping for,' said Mr Angelo Kourkafas, of Edward Jones.
Futures markets lowered their odds for a September interest rate cut following the press conference and statement, which included no major tweaks that would have implied an imminent interest rate cut.
The Dow Jones Industrial Average finished down 0.4 per cent at 44,461.28.
The broad-based S&P 500 shed 0.1 per cent to 6,362.90, while the tech-rich Nasdaq Composite Index rose 0.2 per cent to 21,129.67.
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Earlier, economic data showed the US economy returned to expansion in the second quarter, notching 3 pecent growth after a contraction in the first quarter.
But GDP in both quarters was heavily influenced by import activity in response to Trump's aggressive trade policy.
Mr Powell flagged heightened uncertainty surrounding trade talks.
'It's been a very dynamic time for these trade negotiations,' he told reporters at a press conference. 'We're still a ways away from seeing where things settle down.' AFP
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