Stocks Edge Higher as Traders Eye Fed and EU Talks

Stock prices in the U.S. market experienced a slight increase during the morning hours because investors maintained a cautious positive outlook about trade talks and monetary policy decisions. During his meeting with Federal Reserve Chair Jerome Powell President Donald Trump expressed doubt about a European Union trade agreement while indicating potential Federal Reserve rate reductions.

The Dow Jones Industrial Average increased 0.16% to reach 44,764.67 as it approached its December high point. The S&P 500 index increased by 0.17% while the Nasdaq remained almost unchanged. Market sentiment received support from the better-than-expected financial results of the second quarter. According to LSEG data the S&P 500 companies that have reported earnings so far have achieved better results than analyst predictions at a rate of 80%.

The earnings results did not please all investors. The stock prices of Tesla and General Motors declined substantially throughout the week because both companies issued profit warning announcements. The $1.1 billion tariff-related damage at GM combined with Elon Musk's warning about upcoming EV subsidy reductions caused the company's stock to drop. The stock price of Intel decreased by 9% after the company released a worse-than-expected forecast for its third-quarter financial performance.

Investors maintain intense interest in the upcoming Federal Reserve policy meeting. The White House continues to scrutinize Powell as Trump increases his criticism through a visit to the Fed to protest the $2.5 billion headquarters renovation.

Rate futures indicate a 62% chance of a Federal Reserve interest rate reduction before September.