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The Dow Jones Industrial Average (DJIA) was little changed through the early Wednesday session, trading in a tight circle around 44,600 ahead of the Federal Reserve’s (Fed) latest interest rate decision. Another rate hold is a foregone conclusion for the Federal Open Market Committee (FOMC) as knock-on effects from tariffs pose a credible threat to the United States’ (US) inflation outlook.

US Gross Domestic Product (GDP) growth came in stronger than expected, with the US economy growing 3.0% on an annualized basis through the second quarter, outpacing the 2.4% forecast. Investors remain fixed on the Fed, however, and equity markets remained largely unchanged post-GDP release.

Key “Magnificent Seven” earnings will be posted on Wednesday after the closing bell. Social media giant and aspiring tech giant Meta Platforms (META), alongside software monolith Microsoft (MSFT), will be posting their latest quarterly earnings reports.

What a difference 24 hours makes

On the trade and tariff front, the Trump administration has done an about-face within the span of a single day. On Tuesday, the Trump team proclaimed that the US is nearing a conclusion in trade talks with China and that a wave of successfully negotiated trade deals was earmarked for imminent announcement. On Wednesday, the tone has completely changed: US negotiators abruptly ended trade talks with China, with US President Donald Trump reaffirming his self-imposed deadline of August 1 for the restart of global reciprocal tariffs. Trump also announced a flat 25% tariff on all goods bound for the US from India. Trump also reiterated his intent to start a “penalty” tariff on any country that buys Russian Crude Oil products if Russia doesn’t solve its war in Ukraine within the next ten days.

Dow Jones five-minute chart

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Dow Jones daily chart

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