Wall Street Eyes Fed Decision After Market Highs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks are closing out another strong week, with the S&P 500 and Nasdaq hovering at all-time highs. Strong earnings from major companies helped offset losses at Intel. Investors remain focused on upcoming trade deadlines and interest rate decisions by the Federal Reserve.
U.S. Stock Market Rally + Quick Looks
- S&P 500 and Nasdaq continue near-record performance
- Dow Jones gains 71 points in early trading
- Deckers and Edwards Lifesciences boost indexes with earnings wins
- Intel stock drops nearly 9% after reporting a loss
- Market momentum tied to trade hopes and Fed rate policy
- Trump pressures Fed for interest rate cuts before August deadline
- Fed expected to hold off on cuts until September
- 10-year Treasury yield dips to 4.42%, two-year holds at 3.91%
- Global markets mixed as U.S.-China trade talks develop
Wall Street Eyes Fed Decision After Market Highs
Deep Look
The U.S. stock market edged higher Friday, positioning itself for yet another record-setting close as optimism surrounding trade developments and corporate earnings continues to fuel Wall Street’s rally. The S&P 500 rose by 0.1% in early trading, pushing further into record territory and marking what is likely to be its fourth winning week out of the last five. The Dow Jones Industrial Average added 71 points (0.2%), while the Nasdaq hovered near its all-time high reached a day earlier.
Strong corporate earnings played a key role in the market’s momentum. Footwear and apparel giant Deckers, parent of the Ugg and Hoka brands, surged 16.6% after blowing past profit and revenue expectations for the spring quarter. The company reported especially strong international growth, with overseas sales up nearly 50%.
Meanwhile, Edwards Lifesciences posted a solid 8% gain after exceeding Wall Street forecasts and signaling strong performance across all product segments. It also revised its full-year profit guidance upward, further boosting investor confidence.
These strong performances helped counterbalance losses at Intel, whose stock slid 8.8%. The chipmaker reported a quarterly loss, disappointing analysts who had anticipated a modest profit. Intel also announced major cost-cutting measures, including layoffs, as it attempts to regain its competitive edge in the booming AI chip market—where it has fallen behind companies like Nvidia and AMD.
Investors are also closely watching for broader economic signals, particularly in light of President Donald Trump’s recent trade moves. Fresh off deals with Japan and the Philippines, the White House is eyeing further progress in negotiations with China, with a major deadline looming on August 1. Treasury Secretary Scott Bessent is set to meet with Chinese officials in Sweden next week, raising hopes of a breakthrough before the next round of tariffs is finalized.
Meanwhile, next week’s Federal Reserve meeting adds another layer of anticipation. Trump has repeatedly urged Fed Chair Jerome Powell to lower interest rates, suggesting such a move could reduce federal borrowing costs. However, Powell has remained cautious, emphasizing the need for more data to understand how the administration’s tariffs are influencing inflation and overall economic performance.
“There’s a risk that premature rate cuts could stoke inflation rather than easing it,” said one market analyst. “That would actually increase long-term borrowing costs for the government.”
The bond market reflected that uncertainty. The 10-year Treasury yield edged down slightly to 4.42%, while the two-year yield held steady at 3.91%, indicating that investors are still split on how soon the Fed might act.
While Trump has previously hinted at replacing Powell if rate cuts don’t materialize, he softened his stance this week.
“To do that is a big move, and I don’t think that’s necessary,” the president said Thursday. “I just want to see one thing happen, very simple: Interest rates come down.”
Such comments have stirred concerns about Fed independence, which many see as crucial for keeping markets stable and inflation in check. A president removing the Fed chair could trigger panic, weakening confidence in the institution’s ability to make politically neutral decisions.
Outside of the U.S., markets were mixed. European indexes showed minor declines, while major Asian markets fell, with Hong Kong’s Hang Seng index dropping 1.1% and Shanghai’s Composite slipping 0.3%. Tensions remain over U.S.-China trade relations, but diplomatic efforts are ongoing.
Despite these headwinds, Wall Street’s resilience underscores investor faith in the strength of the U.S. economy and corporate sector, at least for now. But volatility may return as trade negotiations, Fed policy, and earnings season converge over the coming weeks.
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