Dow Jones: Microsoft, Nvidia Pull US Blue Chip Stocks Lower Before Fed Meeting

Dow Slips Ahead of Fed Decision as Nvidia, Salesforce Weigh on Sentiment

The Dow Jones Industrial Average was down 112.93 points to 45,770.52 shortly before the close on Tuesday, a decline of 0.25%, as traders locked in gains ahead of Wednesday’s Federal Reserve policy announcement. The S&P 500 slipped 0.09% to 6,609.10, while the Nasdaq Composite dipped 0.05% to 22,338.31. The mild pullback reflects cautious positioning ahead of an anticipated rate cut.

Are Big Tech Names Like Nvidia and Microsoft Pressuring the Dow?

Top tech stocks weighed on the broader market. Dow components Microsoft fell 0.72% to $511.67, Salesforce dropped 1.14% to $239.75, and Nvidia declined 1.68% to $174.77, contributing directly to the index’s pullback.

Apple, also in the Dow, bucked the trend with a 0.85% gain to $238.71. Outside the index, Oracle surged 4% after reports linked it to a deal that could help keep TikTok operating in the U.S., providing a rare tech-sector bright spot.

Is Chevron Leading Gains in the Dow Despite Trade Uncertainty?

Energy names outperformed. Chevron rose 1.71% to $160.00, supported by firm oil prices and investor rotation into defensives. Caterpillar and JPMorgan both advanced 0.48%, signaling some resilience among industrials and financials. On the downside, UnitedHealth was off 1.87% to $341.39, while Travelers and 3M dropped 1.53% and 1.04%, respectively, dragging on the index.

What Will the Federal Reserve Signal on Rates and Inflation?

Markets are pricing in a 25 basis point rate cut Wednesday—what would be the Fed’s first since December. According to CME FedWatch, futures show a 100% probability of the move. Traders are watching for signs of additional easing from Chair Jerome Powell. Former PIMCO executive Paul McCulley expects Powell to strike a dovish tone, possibly laying the groundwork for up to 100 basis points of cuts, citing disinflation and a stabilizing labor market.

Will U.S.-China Trade Talks and Tariff Threats Reignite Volatility?

Geopolitical risks remain on traders’ radar. Treasury Secretary Scott Bessent said there’s a “framework” deal for TikTok, while also expressing optimism that further talks with China could ease tariff tensions ahead of a November deadline. President Trump also gave a positive read on recent discussions, though U.S. Trade Representative Jamieson Greer confirmed negotiations have been “deferred,” leaving open the risk of renewed trade friction.

Market Outlook

With a quarter-point cut widely expected, attention will turn to Powell’s tone on future moves. A cautious but dovish message could keep equities supported near record levels. However, hesitation or signs of internal Fed division may pressure rate-sensitive stocks. Watch how Dow leaders like UnitedHealth, Salesforce, and JPMorgan react to gauge post-Fed sentiment across key sectors.

More Information in our Economic Calendar.