U.S. Stocks End Mostly Lower; Fed Rate Cut Possible

U.S. stocks closed mostly lower despite an early boost from Federal Reserve Governor Christopher Waller, who suggested in a CNBC interview that tariffs are unlikely to significantly boost inflation—potentially opening the door to a rate cut as early as next month, Medora Lee reported for USA Today.

Waller's comments contrasted with Fed Chair Jerome Powell’s earlier stance this week that the central bank should wait to assess the impact of tariffs on inflation, economic growth, and employment before adjusting rates. I Photo: New York Stock Exchange Facebook

Lower interest rates generally support stock markets by reducing borrowing costs and encouraging investment.

“That would be my view, whether the committee would go along with it or not,” Waller said.

His comments contrasted with Fed Chair Jerome Powell’s earlier stance this week that the central bank should wait to assess the impact of tariffs on inflation, economic growth, and employment before adjusting rates.

The Dow Jones Industrial Average rose 0.08%, or 35.16 points, to close at 42,206.82. The S&P 500 declined 0.22%, or 13.03 points, to 5,967.84, falling below the key 6,000 threshold and marking its third straight loss.

The Nasdaq Composite dropped 0.51%, or 98.86 points, to 19,447.41. Oil prices dipped to $75 per barrel, while the benchmark 10-year U.S. Treasury yield fell to 4.379%.