Dow Pivots Lower as Fed Casts Doubt on More Rate Cuts

The Dow cut its impressive climb short on Wednesday, reversing a triple-digit gain to snap its four-day win streak. The S&P 500 also fell, while the Nasdaq settled at all-time highs, with its counterparts also tapping records earlier in the session. Driving this rout was Fed Chair Jerome Powell's speech, which followed the conclusion of a two-day Fed meeting that resulted in a quarter-point interest rate cut. Powell warned that another cut before the end of the year is "not a foregone conclusion," sending investors spiraling. 

Wall Street is now eyeing "Magnificent 7" earnings, which will dominate the docket in the coming days. Alphabet (GOOGL), Meta Platforms (META), and Microsoft (MSFT) are among the giants reporting results.

5 Things to Know Today

1. Ahead of today's earnings report, Microsoft suffered an outage affecting its Azure and 365 services. (CNBC)
2. Per the Congressional Budget Office (CSO), the nearly one-month long government shutdown has already cost the economy at least $18 billion. (Bloomberg)
3. Tech powerhouse surges on upbeat earnings.
4. Fintech stock weighs down entire sector.
5. Got feedback? We want to hear it!

Crude Resumes Gains After EIA Report

Crude is moving higher after the Energy Information Administration (EIA) reported an almost 7 million barrel drop in  U.S. crude and fuel inventories the last week, a stark difference from the expected 211,000-barrel tumble. December-dated West Texas Intermediate (WTI) crude added 40 cents, or 0.7%, to settle at $60.55 per barrel. 

While the Fed decided to cut interest rates, uncertainty regarding a third cut later this year pressured gold prices. December-dated gold futures dropped 0.1% to trade at $3,977.50 per ounce.