Wall Street Indexes Meander Ahead of Rate Decisions, International Goods Deficit Hit New High in 2024

Barry Adams
29 Jan, 2025
New York City

Stock market indexes struggled to advance, and investors awaited rate decisions later in the day. 

The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.4% as investors shifted their attention to the latest batch of corporate results. 

ASML, Logitech, and SAP reported better-than-expected results, and investors are awaiting the release of earnings updates from Microsoft, Starbucks, Tesla, and Meta Platform. 

The Federal Reserve is likely to hold rates steady, and the fed funds rate range is expected to stay unchanged between 4.25% and 4.50% at the end of a two-day meeting later today. 

The Federal Reserve is set to release its statement at 2:30 p.m. ET, and investors are hoping that policymakers are likely to signal no change in stance. 

The U.S. economy has been growing at a healthy clip over the last four years; labor market conditions have moderated, but employers are still adding jobs at a healthy clip. 

Moreover, wages are still rising at a faster pace than overall inflation, driving an increase in real consumer income and supporting the increase in consumer spending. 

However, the U.S. economy is facing higher inflation, largely driven by looming Trump tariffs and labor shortages created by the nationwide crackdown on illegal immigrants. 

In addition, chaotic presidential administration and weak cabinet appointments are likely to negatively impact consumer confidence and possible federal government shutdown. 

On the economic front, the U.S. goods trade deficit soared to $1.2 trillion in 2024, slightly higher than the previous record of $1.06 trillion in 2022, the U.S. Census Bureau reported Wednesday. 

December exports decreased 4.5% from a year ago to $167.5 billion, and imports rose 3.9% to $289.6 billion. 

The international goods trade deficit expanded by 18% to $122.1 billion from the revised $103.5 billion in November. 

 

U.S. Stock Movers 

Nvidia declined 2.2% to $126.14 and struggled to advance amid continued rout in the artificial intelligence-related stocks after the emergence of a cheaper chatbot alternative from China that does not rely on expensive chips made by the company. 

T-Mobile US jumped 7.6% to $238.0 after the cellular telephone service provider reported stronger-than-expected results in its latest quarter. 

Danaher Corp declined 5% to $235.20 after the medical and industrial products maker estimated possible revenue decline in the current quarter. 

Starbucks jumped 2.6% to $103.09 after the coffeehouse chain reported better-than-expected results, but same-store sales decreased in the quarter.