Wednesday Afternoon Coffee - Markets Update - 28 May 2025 - Wall Street Slips as Traders Digest Fed Minutes, Eye Nvidia Earnings

The Trade Academy Team
5 days ago
2 min read

Markets Update: U.S. equity markets pulled back Wednesday following a strong rally the day before, as investors took a cautious stance ahead of Nvidia’s much-anticipated earnings release and reviewed minutes from the Federal Reserve’s latest policy meeting.

Global Markets Roundup: 28 May 2025

Stocks Drift Lower After Recent Surge

Major indexes closed modestly lower, pausing after Tuesday’s gains driven by easing trade tensions. Traders remained on edge as they awaited fresh guidance from the Fed and quarterly results from heavyweight chipmaker Nvidia.

Dow Jones Industrial Average: -148.59 points (-0.35%) to 42,197.09
S&P 500: -15.88 points (-0.27%) to 5,905.83
Nasdaq Composite: -20.98 points (-0.11%) to 19,177.40

The day’s declines came despite relative strength in the tech sector, with investors on alert for Nvidia's post-bell earnings, along with reports from Salesforce, Synopsys, HP, and others.

Fed Minutes Show Cautious Stance

The Federal Open Market Committee (FOMC) minutes from the May 6–7 meeting revealed policymakers see no urgency to adjust interest rates. With growth and employment steady and policy already moderately restrictive, officials agreed the Fed is "well positioned to wait for more clarity on the outlooks for inflation and economic activity."

Bond Market and Mortgage Pressure

Higher borrowing costs weighed on mortgage demand, with applications declining for a second straight week. The Mortgage Bankers Association cited rising 30-year fixed rates, now climbing for three consecutive weeks.

Dollar Strengthens as Euro Breaks Technical Levels

The U.S. dollar continued to strengthen, with the Dollar Index DXY advancing above 99.9, building on a 0.4% gain from Tuesday. The euro EURUSD dropped below the 200-hour moving average at 1.13036 in New York trade, signaling further bearish pressure amid lingering policy and trade uncertainty.

Commodities Mixed Amid Currency Shifts

Oil prices edged higher, supported by firmer demand signals and geopolitical tension:

WTI Crude (CL1!): +$0.63 to $61.52/barrel
Brent Crude (BRN1!): +$0.48 to $64.57/barrel

Gold futures slipped again, closing down 0.2% to $3,293.60 per ounce, marking three losses in the past four sessions as stronger dollar dynamics kept pressure on bullion.

Agriculture Softens, Cocoa Retreats

Cotton fell to 65.4 cents per pound, the weakest since mid-May, as a firmer greenback offset support from rising oil.
Cocoa retreated below $9,700/tonne, the lowest since May 13, as forecasts for beneficial rainfall eased supply concerns in West Africa.
Wheat futures rose pre-market after the USDA's Crop Progress report showed 45% of U.S. spring wheat is in good or excellent condition, but winter wheat quality declined to 50% from 52% last week. Planting progress for major grains slowed but remains ahead of the five-year average.

Outlook

With Nvidia’s results and additional earnings from key tech firms set to shape sentiment, markets are likely to remain volatile. The Fed’s wait-and-see approach adds to the uncertainty, particularly as inflation signals remain murky and trade policy under the Trump administration continues to shift.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team