Wall Street Holds Breath Midday as Fed Rate Cut Looms; Tech Giants Face Headwinds

Market Overview - The U.S. stock market is showing a cautious and mixed performance as investors await a key interest rate decision from the Federal Reserve [1] - The Dow Jones Industrial Average is up approximately 0.6% to 0.7%, gaining around 252 points, while the S&P 500 is slightly negative, down about 0.1% to 0.13% [2] - The Nasdaq Composite is experiencing a slight downturn, down approximately 0.4% to 0.5%, and the Russell 2000 is up about 1.07% [2] Federal Reserve Interest Rate Decision - The Federal Reserve is expected to announce a 25-basis-point (0.25%) interest rate cut, marking the first reduction of the year [3] - This anticipated cut is seen as a response to a slowdown in the U.S. job market, which is perceived as a greater risk than persistent inflation above the 2% target [3] Economic Data - August housing figures indicate a deceleration in the housing market, with Building Permits at 1,312,000, below the expected 1.37 million, representing a 3.7% year-over-year decrease [5] - Housing Starts also missed forecasts at 1,307,000 against an anticipated 1.37 million, marking an 8.5% year-over-year decline [5] Corporate Earnings and Stock Movements - General Mills, Inc. (GIS) reported fiscal Q1 earnings that surpassed analyst expectations [6] - Nvidia Corp. (NVDA) shares are down approximately 1.2% due to reports of a halt in AI chip purchases by Chinese tech companies [7] - Eli Lilly and Company (LLY) was downgraded to "hold" with a price target of $830 due to a perceived plateau in the obesity market [7] - Kroger Co. (KR) received an upgrade to "buy" with a price target of $75 [7] - Workday, Inc. (WDAY) shares surged around 8% in premarket trading after Elliott Investment Management disclosed a stake of over $2 billion [7] Broader Market Performance - The S&P 500 saw strong Q2 2025 earnings, with 81% of companies beating estimates, although buybacks declined by 20.1% from Q1 2025, totaling $234.6 billion [8] - Q3 expenditures are anticipated to rebound, with the market focused on the Federal Reserve's decision impacting trading in the latter half of the day [8] Sector-Specific Developments - Lyft, Inc. (LYFT) shares soared following an expanded partnership with Google's Waymo for robotaxi services [11] - Oracle Corporation (ORCL) stock rose by 1.5% amid speculation about TikTok's operational status in the U.S. [11] - Chipotle Mexican Grill, Inc. (CMG) shares increased by 1.9% after approving an additional $500 million for share buybacks [11] - ADTRAN Holdings, Inc. (ADTN) experienced a sharp decline of 15.1% after announcing a $150 million convertible senior notes offering [11] - Dave & Buster's Entertainment, Inc. (PLAY) tumbled by 16.7% after reporting earnings significantly below estimates [11] - Apple Inc. (AAPL) shares are down 5% in 2025, attributed to perceptions of being slow in the AI race [11] - Amazon.com, Inc. (AMZN) stock declined by 1.32% over the past five trading sessions despite beating earnings expectations [11]