To The Moon

U.S. stocks slipped Tuesday after Federal Reserve Chair Jerome Powell reminded investors that the path forward for interest rates remains uncertain.

• Dow Jones Industrial Average: -0.19% to 46,292.78

• $S&P 500(.SPX)$ : -0.55% to 6,656.92

• $NASDAQ(.IXIC)$ : -0.95% to 22,573.47 $NVIDIA(NVDA)$

Why Stocks Fell

Powell

Powell’s remarks at the Greater Providence Chamber of Commerce poured cold water on Wall Street’s rally. He highlighted signs of moderating growth, rising unemployment, a weak housing market, and slower consumer spending, while warning of “two-sided risks” for inflation and employment.

Crucially, Powell refused to offer hints about the Fed’s October meeting, stressing that policy is “not on a preset course.” That left traders uncertain after last week’s quarter-point cut, which Powell framed as a risk-management move rather than the start of a cutting cycle.

Tech led Tuesday’s declines, with profit-taking in AI names, while investors rotated into value, small-cap, and dividend stocks. Energy was the standout, buoyed by oil’s resilience.

• Hot Stock: Halliburton +7.3%

• Biggest Loser: Generac -10.3%

• Best Sector: $Energy Select Sector SPDR Fund(XLE)$ +1.7%

• Worst Sector: $Consumer Discretionary Select Sector SPDR Fund(XLY)$ -0.9%

Beyond the Fed: A $100K Visa Fee

Markets also digested the Trump administration’s new $100,000 H-1B visa processing fee, which hits U.S. tech companies reliant on highly skilled foreign workers, most from India.

The fee could weigh on IT service providers like Tata, Infosys, and Cognizant, though in the long run it may accelerate hiring in India itself. Still, the move risks further straining U.S.-India relations, already frayed by steep tariffs.

Coming Up

• Wednesday: Cintas, KB Home earnings; August new home sales.

Conclusion

Powell’s refusal to commit to a policy path reminded investors that rate cuts aren’t guaranteed, even with slowing growth. That reality check, combined with political risks at home and trade tensions abroad, makes markets more vulnerable to volatility in the weeks ahead…

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.