US close: Fed uncertainty weighs on stocks, Dow retreats from record

(Sharecast News) - US stocks posted mild losses on Wednesday as solid economic data and comments from the new head of the Federal Reserve added to uncertainty about the future path of interest rates.

The Dow pulled back just 0.03% from the previous day's record closing high of 52,319.20, the S&P 500 fell 0.22%, and the Nasdaq slipped 0.66%.

Comments from Fed chair Kevin Warsh were in focus on Wednesday as he refused to offer guidance on future monetary policy decisions but acknowledged that inflationary risks had eased in recent weeks.

Asked at a conference in Portugal whether interest rates would rise given current inflation pressures, the policymaker said: "I'm not going to make a judgment now."

"Stocks across Europe and the US took a step back as investors continued to fret about the prospect of the Fed pushing up interest rates," said Dan Coatsworth, head of markets at AJ Bell.

"Markets are currently pricing in a 29.4% chance of a US interest rate hike at this month's Fed meeting, down from a 34.2% probability a week ago. Theoretically, that should be positive for equities, yet what's troubling investors is the prospect of a rate hike at the end of the year," Coatsworth said.

Economic data solid

On the macro front, US employers announced 45,849 job cuts in June, the lowest monthly total since December 2025 and down 53% from May, according to Challenger, Gray & Christmas. Cuts were also 4% lower than a year earlier.

US construction spending edged higher in May, rising 0.1% to an annualised $2.21trn, according to Census Bureau data.

US factory activity grew for the sixth straight month in June, with the ISM manufacturing PMI coming in at 53.3, though slightly lower than the 54.0 level reported the month before.

However, US private sector employment grew less than expected in June, according to figures released on Wednesday by ADP. Employment rose by 98,000 following an unrevised 122,000 jump in May, coming in below economists' expectations for a 120,000 increase.

Market movers

Chipmakers were weighing heavily on markets, with Micron Technology and Sandisk among the worst performers as the sector cooled after recent gains.

Cyclical stocks in the financial, real estate, and consumer discretionary sectors made gains after the positive economic data. Banks in particular outperformed, with JPMorgan Chase, Bank of America, Wells Fargo and Goldman Sachs all finishing firmly higher.

Nike jumped after beating analysts' forecasts with its fourth-quarter earnings. The sportswear giant, however, warned that its turnaround would remain uneven due to weakness in China and pressure on demand.

General Mills surged after growing fourthquarter sales and saying its fiscal 2027 outlook includes improved organic growth and greater efficiency as it targets $3bn in cost savings by fiscal 2030.

Meanwhile, Meta Platforms put in impressive gains on reports that the Facebook parent is planning a new cloud business and will sell excess computing power to external customers.

Dow Jones - Risers

Nike Inc. (NKE) $43.06 4.90%

Salesforce.Com Inc. (CRM) $163.23 4.19%

Apple Inc. (AAPL) $294.38 3.84%

Microsoft Corp. (MSFT) $384.28 3.49%

American Express Co. (AXP) $348.00 2.88%

Unitedhealth Group Inc. (UNH) $426.54 2.62%

Visa Inc. (V) $351.08 2.33%

JP Morgan Chase & Co. (JPM) $334.07 2.06%

International Business Machines Corporation (CDI) (IBM) $286.25 1.79%

Travelers Company Inc. (TRV) $334.62 1.36%

Dow Jones - Fallers

Caterpillar Inc. (CAT) $991.41 -6.90%

Intel Corp. (INTC) $127.02 -5.14%

Merck & Co. Inc. (MRK) $125.37 -2.44%

Dow Chemical Co. (DOW) $27.02 -1.24%

3M Co. (MMM) $159.96 -1.20%

Verizon Communications Inc. (VZ) $41.99 -0.83%

Cisco Systems Inc. (CSCO) $117.01 -0.62%

Walt Disney Co. (DIS) $95.71 -0.56%

Home Depot Inc. (HD) $350.84 -0.52%

McDonald's Corp. (MCD) $269.43 -0.33%

S&P 500 - Risers

Meta Platforms Inc. (META) $612.91 9.90%

General Mills Inc. (GIS) $37.77 8.53%

Cognizant Technology Solutions Corp. (CTSH) $41.07 7.80%

Dxc Technology Company (DXC) $9.54 7.80%

Elevance Health Inc. (ELV) $416.19 7.62%

Robert Half Inc. (RHI) $32.97 7.39%

Align Technology Inc. (ALGN) $181.49 7.26%

Nasdaq Inc (NDAQ) $82.73 7.16%

Centene Corp. (CNC) $68.35 6.46%

ConAgra Brands Inc (CAG) $14.30 6.24%

S&P 500 - Fallers

Corning Inc. (GLW) $220.63 -13.62%

Micron Technology Inc. (MU) $1,032.28 -9.02%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Applied Materials Inc. (AMAT) $650.91 -8.43%

Western Digital Corp. (WDC) $598.37 -8.08%

Lam Research Corp. (LRCX) $391.26 -7.89%

KLA-Tencor Corp. (KLAC) $266.19 -7.81%

Nektar Therapeutics (NKTR) $64.39 -7.48%

Caterpillar Inc. (CAT) $991.41 -6.90%

CenturyLink Inc. (LUMN) $7.15 -6.90%

Nasdaq 100 - Risers

Meta Platforms Inc. (META) $612.91 9.90%

Cognizant Technology Solutions Corp. (CTSH) $41.07 7.80%

Align Technology Inc. (ALGN) $181.49 7.26%

Workday, Inc. (WDAY) $130.27 6.88%

Automatic Data Processing Inc. (ADP) $235.73 5.13%

Gen Digital Inc. (GEN) $26.11 4.90%

Baidu Inc. (BIDU) $117.94 4.74%

Mercadolibre Inc. (MELI) $1,742.19 4.69%

DENTSPLY Sirona Inc. (XRAY) $11.09 4.62%

JD.com, Inc. (JD) $26.31 4.43%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Micron Technology Inc. (MU) $1,032.28 -9.02%

Applied Materials Inc. (AMAT) $650.91 -8.43%

Western Digital Corp. (WDC) $598.37 -8.08%

Lam Research Corp. (LRCX) $391.26 -7.89%

KLA-Tencor Corp. (KLAC) $266.19 -7.81%

Seagate Technology Plc (STX) $915.19 -5.66%

Intel Corp. (INTC) $127.02 -5.14%

Asml Holdings N.V. (ASML) $1,843.04 -5.00%

Comcast Corp. (CMCSA) $23.73 -4.20%