- The Dow turned lower on Wednesday after the tariff rollback hype began to fizzle out.
- Inflation came in close to expectations, making it unlikely that the Fed will stray from its neutral stance.
- One analyst warns that the stock market rally is being fueled by a dangerous catalyst: FOMO.
The Dow Jones broke out its early-week slump on Wednesday, but unfortunately for stock market bulls, the index mounted a hasty retreat instead of pressing further into record territory.
Dow Slips Below its Record High
Wall Street’s three primary indices all fell on Wednesday. The Dow Jones Industrial Average declined 29.18 points or 0.11% to 27,662.31.
One day earlier, the Dow had closed the session completely unchanged for the first time in five years.
The Dow dropped at the opening bell, but a comment from Fed Chair Jerome Powell helped stabilize the index. | Source: Yahoo Finance
The S&P 500 dipped 6.07 points or 0.2% to 3,085.77
The Nasdaq fell 21.08 points or 0.25% to 8,465.01.
Gold ticked higher as equities wavered. At last check, the yellow metal had climbed 0.73%, though it still traded well below the $1,500 level.
Stock Market Fizzles Along With Tariff Rollback Hype
Stocks struggled as investors came to grips with the reality that the US and China have not reached an agreement on tariff rollbacks, and that tariffs may actually increase if negotiators fail to put the long-awaited “phase one” trade deal in writing within the near future.
White House economic adviser Larry Kudlow firmly stated that there would be no tariff rollbacks until an “entire deal” was in place.
Adding to the bearish mood,