Wall Street is creeping into Wednesday's trading day with a defensive posture, as investors grapple with a flurry of mixed signals from major retailers and brace for forward guidance from the Federal Reserve.
The recent tech-led tumble left both the S&P 500 and Nasdaq nursing their biggest down days in more than two weeks, setting a cautious tone for the morning. Retail giants are contributing to market anxiety: Target stock tumbled roughly 10% after both confirming a new CEO appointment and standing by a pared-down annual outlook. Estee Lauder slid sharply—down about 7.6%—driven by a sobering forecast that cited the drag from escalating tariffs. Meanwhile, Lowe’s offered a rare bright spot, climbing around 2.7% as it lifted its full-year growth forecast and moved ahead with an $8.8 billion acquisition of Foundation Building Materials.
Sweeping uncertainty also rippled through semiconductor names. Speculation is mounting that the Trump administration could take equity stakes in tech firms securing CHIPS Act funding, putting pressure on Nvidia, AMD, and Intel, which are trading lower in early activity.
Now, investor sentiment is squarely focused on the Federal Reserve's narrative. Markets await the July meeting minutes and anticipate insights from Chair Powell at the Jackson Hole symposium. With inflation not yet fully tamed, expectations of a September rate cut remain fluid—and perhaps increasingly optimistic. Adding to the gloom, recent tariff hikes on hundreds of steel and aluminum goods are complicating the economic backdrop, leaving traders in a holding pattern until central bank signals offer clarity.
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