The tech-heavy Nasdaq rose 31.38 points (0.2%) to 21,129.67, the S&P 500 edged down 7.96 points (0.1%) to 6,362.90 and the Dow fell 171.71 points (0.4%) to 44,461.28.
The major averages ended mixed after the Federal Reserve, in a divided vote, opted to keep interest rates steady at 4.25% to 4.50%. While the Fed cited its commitment to full employment and 2% inflation, Governors Bowman and Waller favored a rate cut. Fed Chair Jerome Powell emphasized that no decision has been made regarding a rate cut in September, stating it will depend on upcoming data.
Payroll processor ADP released a report showing private sector employment in the U.S. increased by more than expected in the month of July. The report said private sector employment jumped by 104,000 jobs in July after slipping by a revised 23,000 jobs in June. The Commerce Department too released a report showing the U.S. economy rebounded by more than expected in the second quarter of 2025. The report said real GDP surged by 3% in the second quarter after falling by 0.5% in the first quarter.
The rebound by real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP and an increase in consumer spending, the Commerce Department said.
Most of the major sectors showed only modest moves, contributing to the lackluster performance by the broader markets. Transportation stocks substantial moved downwards, with the Dow Jones Transportation Average tumbling by 3%. Gold stocks was also significant weak , as reflected by the 2.9% slump by the NYSE Arca Gold Bugs Index. Energy and commercial real estate stocks too saw notable weakness on the day while semiconductor and brokerage stocks moved to the upside.
Asia-Pacific stocks turned in another mixed performance. Japan's Nikkei 225 Index edged down by 0.1% and Hong Kong's Hang Seng Index slumped by 1.4% while China's Shanghai Composite Index crept up by 0.2%. major European markets all moved modestly higher on the day while the German DAX Index rose by 0.2%, the French CAC 40 Index inched up by 0.1% and the U.K.'s FTSE 100 Index closed just above the unchanged line.
In the bond market, treasuries gave back ground after moving notably higher in the previous session. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, climbed 4.6 bps to 4.37%.