The S&P 500 (SPX) and the Nasdaq 100 (NDX) closed in the green following a news-driven day of trading.
For starters, the Fed held the federal funds rate steady between 4.25% and 4.50% in an unanimous decision. After the decision was publicized, Fed Chair Jerome Powell held a news conference, saying that Trump’s reciprocal tariffs, if enacted at the rates set on “Liberation Day,” could lead to higher inflation and lower unemployment. Powell also stressed that the Fed is taking on a wait and see approach in regard to monetary policy and the tariff situation.
Meanwhile, Treasury Secretary Scott Bessent is preparing to meet with top Chinese trade officials in Switzerland over the weekend. Ahead of the meeting, Trump noted today that he would not preemptively lower the U.S.’s 145% tariffs on Chinese goods in order to get China on board with more material negotiations.
In terms of more positive tariff developments, Vietnam’s trade minister, Nguyen Hong Dien, encouraged Vietnamese companies to increase trade with the U.S. Last year, the U.S. had a $123.5 billion trade deficit with Vietnam.
It was also a busy day for two Magnificent 7 companies: Google (GOOG) (GOOGL) and Nvidia (NVDA).
GOOG stock finished the day down by 7.51% after Apple’s (AAPL) senior vice president of services, Eddy Cue, revealed that Apple was exploring the integration of AI search engines into its Safari browser.
As for Nvidia, a Bloomberg report revealed that the Trump administration would scrap Biden-era restrictions on AI chip exports and replace them with new rules. NVDA stock closed higher by 3.10% on the news.
