Wall Street closes lower amid earnings reports and Fed rate speculation

AWANI

Wall Street ended lower as investors reacted to weak earnings from UnitedHealth and Boeing, ongoing U.S.-China trade tensions, and anticipation of Federal Reserve signals on future interest rate cuts.

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00:00Wall Street ended lower on Tuesday as traders focus on quarterly earnings and trade talks between the United States and China,

00:07and before the Federal Reserve on Wednesday may give fresh clues on when it is likely to continue cutting interest rates.

00:15Quarterly results from Dow Components' UnitedHealth Group and Boeing were not well received by investors,

00:21with UnitedHealth ending down more than 7% and Boeing losing more than 4%.

00:27Stocks also deep after U.S. Rajri, Secretary Scott Benson said he had told Chinese officials that,

00:35given U.S. secondary tariff legislation on sanctioned Russian oil,

00:39China could face higher tariffs if Beijing continue with its Russian oil purchases.

00:44U.S. President Donald Trump said he had spoken with Benson,

00:47who told him that he had a very good meeting with Chinese trade negotiators in Sweden,

00:51as officials agreed to seek an extension of their 90-day tariff truce.

00:57The U.S. Central Bank is expected to keep rates steady on Wednesday,

01:00with policymakers concerned that Trump's tariff policy will increase inflation over the coming months.

01:05We're not expecting a rate cut.

01:08We are expecting, you're laying the groundwork for maybe some dissent in terms of the voting for a cut this bill around,

01:14but unlikely to see a change this month with an indication that they are watching the data,

01:22which we get some additional data this week, both on PCE and which covers inflation,

01:28and then the labor market as well, which are the two things that they're trying to manage at the Federal Reserve.

01:34So setting up for some kind of move probably in September.

01:38That's the expectation.

01:41Data on Tuesday showed a decrease in job openings and hiring in June,

01:45as well as deteriorations in consumers' perceptions of current employment availability.

01:50The reports dovetail with the high number of people receiving unemployment checks.

01:56Fed funds futures traders are pricing in two 25-basis-point cuts this year,

02:00which are expected in September and December.

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