The three major stock indices on the New York Stock Exchange closed lower. This is interpreted as a result of increasing caution regarding a rate cut in September.
On the 25th (local time), the Dow Jones Industrial Average closed at 40,282.47, down 349.27 points (0.77%) from the previous session. The Standard and Poor's (S&P) 500 index fell 27.59 points (0.43%) to 6,439.32, while the technology-heavy Nasdaq index decreased by 47.24 points (0.22%) to 21,449.29.
Earlier, on the 22nd, Jerome Powell, chairman of the U.S. Federal Reserve, hinted at the possibility of a rate cut during his Jackson Hole speech, which drove stock prices up. The Dow Jones also broke its previous all-time high recorded last December.
However, as these expectations have somewhat faded, the stock market appears to have been affected as well. There are forecasts that the extent of the rate cut within the year may be smaller than anticipated.
By individual stocks, Nvidia, ahead of its earnings announcement, rose 1.02%. Alphabet (1.16%) and Tesla (1.94%) also showed an upward trend.
Intel fell more than 1%. Intel stated through a disclosure that securing 10% equity from the Donald Trump administration could 'pose risks across the business.'
Apple (0.26%), Microsoft (MS) (0.59%), Amazon (0.39%), and Meta (0.20%) also closed lower.
Tesla rose 1.94%, likely due to the U.S. Internal Revenue Service's (IRS) interpretations of electric vehicle tax credits stimulating investor sentiment.
Earlier, the IRS noted that the tax cut of up to $7,500 per vehicle specified in President Donald Trump's large tax cut plan, the 'Great and Beautiful Bill (OBBBA),' would also apply to vehicles delivered after the deadline of September 30.
After President Trump announced on the 22nd that tariffs would also be imposed on furniture, furniture companies experienced a consecutive decline. Wayfair (5.91%) and RH (5.33%) saw declines of over 5%, and Williams-Sonoma (2.68%) also closed lower.
Sam Stoval, a strategist at CFRA Research, said, 'The market still has much to endure until the Federal Open Market Committee (FOMC) meeting on the 17th of next month,' predicting that 'the market will show limited upward momentum until then.'