Wall Street Ends Lower Amid Tariff Concerns and Anticipation of Fed Decision

U.S. stocks declined on Tuesday, ending a two-day rally, as investors exercised caution ahead of the Federal Reserve’s upcoming policy announcement and assessed potential impacts of President Donald Trump’s tariff policies. The Dow Jones Industrial Average fell 260.32 points (0.62%) to 41,581.31, the S&P 500 lost 60.46 points (1.07%) to 5,614.66, and the Nasdaq Composite dropped 304.55 points (1.71%) to 17,504.12.

The Federal Reserve is widely expected to keep interest rates unchanged in its Wednesday statement, accompanied by updated economic projections. Market participants are keenly awaiting these updates to gauge the central bank’s stance amid ongoing economic uncertainties.

Investors are also concerned about the potential economic impact of President Trump’s proposed tariffs, which could affect inflation and growth. This uncertainty has contributed to recent market volatility, with sectors sensitive to trade tensions experiencing notable declines.

In early trading on Wednesday, major U.S. stock indexes showed modest gains as investors awaited the Fed’s policy statement and projections. The Dow Jones Industrial Average and S&P 500 each rose 0.4%, while the Nasdaq Composite added 0.5%.