The stock market whipsawed as Federal Reserve Chairman Jerome Powell took questions from reporters and the White House released a wave of orders.
The Dow fell 240 points, or 0.5%, after spiking up about 100 points around the time the press conference began. The S&P 500 was down 0.3%. The Nasdaq Composite was down 0.1%.
Stocks may be reacting to moves from the president, who signed an executive order suspending the de minimis exemption for commercial shipments globally. It was previously suspended for China and Hong Kong. He also signed a proclamation putting 50% tariffs on imports of semi-finished copper products, effective Aug. 1.
Still, stocks often trade sideways during Powell pressers, losing steam heading into the close on Fed days.
Asked about market bets on a September cut, Powell said employment and inflation data over the coming months will help inform the central bank’s decision. He said no decisions about September have been made, and the economy is not performing as though restrictive policy is holding it back inappropriately. He did acknowledge downside risk to the labor market.
Asked whether the delay to cuts will lead companies to hold back on price raises, Powell said some companies will raise prices when and as they can. He noted washing machines were tariffed while dryers weren’t, yet the prices of both went up together during the first Trump administration.
“Companies will often cross the street in a group, if you know what I mean,” Powell said.