Stocks closed Thursday’s session down but capped a month of gains as the clock ticked down to President Trump’s tariff deadline. Wall Street also awaited more key earnings salvos from Big Tech after strong Meta (META) and Microsoft (MSFT) earnings boosted faith in massive AI investments.
The Nasdaq Composite (^IXIC) fell below the flatline, erasing earlier session gains of over 1%. The S&P 500 (^GSPC) fell 0.4%. The Dow Jones Industrial Average (^DJI) lagged, sliding about 0.7%.
After notching a series of all-time high closes in July, the S&P 500 and Nasdaq closed out the month with gains of roughly 2.3% and 3.7% respectively. It was the third straight month of gains for the S&P 500 and fourth in a row for the Nasdaq. The Dow closed out the month little changed.
Investors recalibrated toward the tail end of a furious week of earnings and economic datapoints. Trump’s tariffs are set to go into effect Friday, when new deals will come into effect and with the president set to outline terms for the rest of the US’s trade partners. Trump said Wednesday that he had extended current tariff rates with Mexico, the US’s largest partner, another 90 days while the countries work toward a bigger deal.
Meanwhile, the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) released on Thursday morning showed price increases accelerated in June as inflation remained above the Fed’s 2% target.
The release comes after the Fed held interest rates steady following its two-day policy meeting on Wednesday, with two Fed governors dissenting.
Following the decision, Fed Chair Jerome Powell stressed “no decisions” had been made about a September rate cut. Bets on a September slash fell below 40% on Thursday, according to the CME Group, down from about 60% before the meeting.
On the docket for Friday is the key jobs report, which looms as another key signal of the US economy’s health.
The developments somewhat overshadowed blowout earnings from Big Tech. Meta (META) stock shot up over 11%, as investors welcomed its earnings beat and stronger-than-expected guidance even as it ramps up its AI spending spree. Microsoft (MSFT) stock jumped as much as 8% before paring gains after its impressive results, which pushed the tech giant’s market capitalization above $4 trillion.
Markets are now looking to after-hours results from their “Magnificent Seven” peers, Apple (AAPL) and Amazon (AMZN).
LIVE COVERAGE IS OVER 26 updates
