Wall Street Stays Cautious Ahead of Fed Call as Earnings Shake Up Big Names

Wall Street was treading water Wednesday, with investors keeping one eye on a fresh batch of earnings and the other on the Federal Reserve’s big rate decision. The Dow Jones dipped slightly, the S&P 500 eked out a small gain, and the Nasdaq continued its slow grind upward, powered by tech names ahead of major earnings reports.

The real fireworks are expected later in the day when Fed Chair Jerome Powell takes the mic. Investors don’t expect a rate cut today—but what Powell says about inflation, growth, and tariffs could shape market sentiment for the rest of the summer.

Market Snapshot (Midday):

• Dow Jones: Down 0.1%
• S&P 500: Up 0.1%
• Nasdaq: Up 0.2%
• Russell 2000 (small caps): Up 0.7%
• 10-year Treasury yield: 4.37%
• Volume: Light across both NYSE and Nasdaq
• Winners vs. losers: Pretty evenly matched

With second-quarter GDP beating expectations at 3%, thanks to a drop in imports, some are wondering if the Fed might delay rate cuts. But underlying demand slowed—something the Fed watches closely. The central bank is widely expected to hold rates steady today, with only a 3% chance of a cut, according to CME FedWatch.

The real action will come at 2:30 p.m. ET, when Powell speaks. Investors are hoping for some clarity on what the Fed thinks about the economy’s strength and whether tariffs will force their hand on rates.

Palo Alto Networks (PANW) took a big hit—down nearly 8%—after news broke that it’s acquiring CyberArk Software (CYBR) in a cash-and-stock deal. CyberArk shareholders will get 2.2 shares of PANW and $45 in cash for each share they hold. CyberArk gave back some of Tuesday’s gains as traders digested the terms.

Earnings Movers:

• Humana (HUM): Crushed earnings estimates and jumped 6%
• GE Healthcare (GEHC): Beat on earnings, but still dropped 9%
• American Electric (AEP): Up 4% after strong results
• SoFi (SOFI): Down 8% after announcing a $1.5 billion public offering
• Visa (V): Beat earnings but still slid 2.3% after cautious guidance
• Starbucks (SBUX): Posted solid Q3 sales but slipped 1.3%
• VF Corp (VFC): Skyrocketed 22% after beating revenue estimates
• Kraft Heinz (KHC): Flat despite topping revenue forecasts
• Hershey (HSY): Gained 4% on strong earnings

The market is waiting on earnings from Microsoft (MSFT) and Meta (META) after the bell. Both stocks edged higher in early trading, with Meta trying to hold above its 50-day moving average and Microsoft near record highs.

Amazon (AMZN) and Apple (AAPL) will follow Thursday, and investors are betting on the “Magnificent Seven” to steer the broader market through a summer filled with tariffs, rate drama, and global trade tensions.

President Trump just announced a 25% tariff on Indian imports, set to take effect August 1. He also warned that countries still without trade deals shouldn’t expect extensions. It’s more pressure on the global supply chain—and another wild card the Fed has to factor in.

Trade talks with China wrapped up with no clear breakthrough, while South Korea is scrambling to finalize a deal before Trump’s deadline.

Reuters and Investor’s Business Daily contributed to this report.