Most US stocks fall as hopes weaken for a September cut to interest rates

NEW YORK (AP) — Most U.S. stocks slipped on Wednesday after doubts rose on Wall Street about whether the Federal Reserve will deliver economy-juicing cuts to interest rates by September.

The S&P 500 edged down by 0.1%, coming off its first loss after setting all-time highs for six successive days. The Dow Jones Industrial Average dropped 171 points, or 0.4%, and the Nasdaq composite rose 0.1%.

Stocks felt pressure from rising Treasury yields in the bond market after the Federal Reserve voted to hold its main interest rate steady. The move may upset President Donald Trump, who has been angrily lobbying for lower interest rates, but it was widely expected on Wall Street.

What may have surprised investors more was Fed Chair Jerome Powell’s pushing back on expectations that the Fed could cut rates at its next meeting in September. Besides Trump, two members of the Fed’s committee have also been calling for lower rates to ease the pressure on the economy, and they dissented in Wednesday’s vote.

But Powell would not commit to a September cut in rates, pointing to how inflation remains above the Fed’s 2% target, while the job market still looks to be “in balance.”

A cut in rates would give the job market and overall economy a boost, but it could also risk fueling inflation when Trump’s tariffs may be set to raise prices for U.S. consumers. The Fed’s job is to keep both the job market and inflation in a good place.

Trump on Wednesday announced a 25% tariff on imports coming from India, along with an additional tax because of India’s purchases of Russian oil, beginning on Aug. 1. That’s when stiff tariffs Trump has proposed for many other countries are also scheduled to kick in, unless they reach trade deals that lower the rates.

“The economy is in good shape, but it’s in an unusual situation,” Powell said.

He also said that the Fed will receive two months’ worth of data on inflation, the job market and other economic indicators before it meets again to vote on rates in September. That could give the Fed more confidence that the risk of high inflation is no longer bigger than the risk of a weak job market, a combination that would prod officials toward lowering rates.

Powell’s comments drove traders to pare back bets on a cut in September. They now see just a 45% chance of that, down from a nearly 65% probability a day earlier, according to data from CME Group.

The yield on the two-year U.S. Treasury note rose to 3.93% from 3.86% late Tuesday. It tends to closely follow expectations for what the Fed will do with its overnight interest rate.

The 10-year Treasury, which also takes into account longer-term expectations for the economy and inflation, rose to 4.36% from 4.34%.

A report earlier in the morning suggested the U.S. economy’s growth was much stronger during the spring than economists expected. But underlying trends beneath the surface may be more discouraging.

“Cutting through the noise of the swings in imports, the economy is still chugging along, but it is showing signs of sputtering,” said Brian Jacobsen, chief economist at Annex Wealth Management.

On Wall Street, Humana rose 12.4% after the insurer and health care giant reported stronger results for the spring than expected. It also raised its forecasts for profit and revenue over the full year.

Video-game maker Electronic Arts climbed 5.7% after likewise topping Wall Street’s expectations.

Companies are under pressure to deliver solid profit growth. They need to in order to justify the big jumps in their stock prices during recent months, which has caused some critics to say the broad U.S. stock market looks too expensive.

Trane Technologies, whose stock came into the day with a 27.5% gain for the year so far, tumbled even though it reported a stronger-than-expected profit for the latest quarter. The heating, ventilation and air conditioning company’s revenue came up short of analysts’ estimates, as did its forecast for profit in the current quarter. It dropped 8.4%.

Freeport-McMoRan, a copper producer with mines around the world, tumbled 9.5% after Trump signed an executive order to tax imports of copper at 50%.

Starbucks slipped 0.2% after reporting a weaker profit than analysts expected as it tries to turn around its operations. The company is hoping to boost its performance through improved store operations and new products, including a cold foam protein drink.

All told, the S&P 500 slipped 7.96 points to 6,362.90. The Dow Jones Industrial Average dropped 171.71 to 44,461.28, and the Nasdaq composite rose 31.38 to 21,129.67.

In stock markets abroad, indexes were mixed across Europe and Asia. Hong Kong’s Hang Seng fell 1.4%, and South Korea’s Kospi rose 0.7% for two of the bigger moves.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Trader William Lawrence works on the floor of the New York Stock Exchange, Tuesday, July 29, 2025. (AP Photo/Richard Drew)

Trader Leon Montana works on the floor of the New York Stock Exchange, Tuesday, July 29, 2025. (AP Photo/Richard Drew)

Options trader Chris Dattolo works on the floor of the New York Stock Exchange, Tuesday, July 29, 2025. (AP Photo/Richard Drew)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, July 30, 2025. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, July 30, 2025. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, July 30, 2025. (AP Photo/Ahn Young-joon)

WASHINGTON (AP) — U.S. forces in the Caribbean Sea have seized another sanctioned oil tanker the Trump administration says has ties to Venezuela, part of a broader U.S. effort to take control of the South American country’s oil.

Homeland Security Secretary Kristi Noem wrote Thursday on social media, “Motor Tanker Veronica had previously passed through Venezuelan waters, and was operating in defiance of President Trump’s established quarantine of sanctioned vessels in the Caribbean.”

A social media post from U.S. Southern Command on the capture said that Marines and sailors launched from the aircraft carrier USS Gerald R. Ford to make the capture while Noem’s post noted that, like in previous raids, a U.S. Coast Guard tactical team conducted the boarding and seizure.

Noem posted a brief video that appeared to show part of the ship’s capture. The black-and-white footage showed helicopters hovering over the deck of a merchant vessel while armed troops dropped down on the deck by rope.

The Veronica is the sixth tanker that has been seized by U.S. forces as part of the effort by President Donald Trump’s administration to control the production, refining and global distribution of Venezuela’s oil products, and the fourth since the U.S. ouster of Venezuela President Nicolás Maduro in a surprise nighttime raid almost two weeks ago.

Noem, in her social media post, said that the raid was carried out with “close coordination with our colleagues” in the military as well as the State and Justice departments.

“Our heroic Coast Guard men and women once again ensured a flawlessly executed operation, in accordance with international law,” Noem added.

As with prior posts, Noem and the military framed the seizure as part of an effort to enforce the law. Noem argued that the multiple captures show that “there is no outrunning or escaping American justice.”

However, other officials in Trump's Republican administration have made clear they see it as a way to generate cash as they seek to rebuild Venezuela’s battered oil industry and restore its economy.

Last week, Trump met with executives from oil companies to discuss his goal of investing $100 billion in Venezuela to repair and upgrade its oil production and distribution. His administration has said it expects to sell at least 30 million to 50 million barrels of sanctioned Venezuelan oil.

This story has been corrected to show the Veronica is the fourth, not the third, tanker seized by U.S. forces since Maduro's capture.

U.S. Homeland Security Secretary Kristi Noem speaks during a press conference, Thursday, Jan. 8, 2026, in New York. (AP Photo/Yuki Iwamura)

U.S. Homeland Security Secretary Kristi Noem speaks at a news conference at Harry Reid International Airport, Nov. 22, 2025, in Las Vegas. (AP Photo/Ronda Churchill, File)