Stocks Slip as Powell Stays the Course, Wall Street Turns to Figma, Big Tech Earnings

📺 Chris Whalen's warning about the Federal Reserve!

U.S. stocks ended modestly lower Wednesday as Federal Reserve Chair Jerome Powell struck a cautious tone on monetary policy, dashing hopes for a clearer signal on rate cuts. The Dow Jones Industrial Average fell 171.71 points, or 0.38%, to 44,461.30. The S&P 500 eased 7.91 points, or 0.12%, to 6,362.95, while the Nasdaq Composite rose 31.38 points, or 0.15%, to 21,152.07.

Markets had largely priced in the Fed’s decision to hold rates steady at 4.25% to 4.50%, but attention centered on Powell’s remarks, which emphasized patience and a strict data-dependent approach. “We’ve made no decisions about September,” Powell said, stressing that the Fed would evaluate two more jobs reports and two rounds of inflation data before its next move. The absence of a dovish pivot pulled futures pricing for a September cut down to 53%, below the historical threshold that typically precedes Fed action.

Powell acknowledged a moderation in growth—GDP expanded just 1.2% in the first half of the year—and noted consumer spending had “finally slowed.” Though inflation has cooled, it remains “somewhat elevated,” with core PCE expected to rise 2.7% year over year in June. On the labor front, he described conditions as still “solid,” but flagged signs of weakening private-sector job creation and stable but softening hiring momentum.

Meanwhile, Treasury yields climbed, with the 2-year note rising to 3.943% and the 10-year yield at 4.37%, reflecting diminishing hopes of imminent easing. Equity sectors sensitive to rate policy, including financials and industrials, underperformed, while the tech-heavy Nasdaq eked out gains amid investor rotation ahead of a packed Thursday.

IPO Spotlight: Figma Set to Debut Thursday

Investors are also eyeing the highly anticipated IPO of Figma, the collaborative design software company that will begin trading Thursday on the NYSE under the ticker “FIG.” The offering has been met with extraordinary demand—nearly 40 times oversubscribed—and the price range was lifted to $30–$32 a share, potentially valuing the company near $18.8 billion.

Figma, which generated $749 million in 2024 revenue and grew 48% year over year, plans to raise approximately $1.2 billion, with proceeds earmarked for AI product development and international expansion. “These might be some of the best financials we’ve seen this year,” said Dean Quiambao, Technology Industry Leader at Armanino, citing strong growth metrics and retention rates.

Earnings Watch: Amazon and Apple On Deck

Thursday will also bring critical earnings reports from Amazon and Apple, two of the most influential components of major indexes.

Amazon is expected to post Q2 revenue of $162.28 billion, led by AWS and advertising growth, but faces margin pressures tied to tariffs and rising AI infrastructure costs. Analysts expect AWS revenue near $30.7 billion and are closely watching whether Amazon will lift its 2025 capex guidance to match peers like Alphabet.

Apple, meanwhile, is projected to report Q3 revenue of $88.9 billion, as investors look for clarity on iPhone demand trends, $900 million in tariff-related costs, and AI strategy amid mounting pressure from rivals. Services revenue—forecast at $27.5 billion—remains a key profit engine with margins above 70%, offsetting softness in hardware segments.

With Powell offering continuity but little new clarity, the spotlight now shifts to earnings and new listings. The combination of a closely watched IPO and two of the largest tech companies reporting in a single session sets the stage for a potentially volatile Thursday.