FX.co ★ Double Whammy for the Markets: CarMax in Crisis, Waaree Energies Under Investigation

Wall Street Ends Lower Amid Fed Uncertainty

U.S. stocks closed Thursday with modest losses as most sectors of the S&P 500 slipped. Investors grew cautious, reassessing expectations about how quickly the Federal Reserve may proceed with further interest rate cuts.

Jobless Claims and Economic Growth

Labor Department figures showed that initial jobless claims fell by 14,000 to 218,000 for the week ending September 20, after seasonal adjustments. Revised estimates also revealed stronger second-quarter economic growth than previously thought, driven by resilient consumer spending and rising business investments.

Fed Officials Urge Caution

Austan Goolsbee, president of the Chicago Federal Reserve, warned that cutting rates too aggressively could reignite inflationary pressures. His remarks followed last week's decision by the Fed to lower its benchmark rate by 25 basis points – the first reduction since December – amid signs of weakness in the labor market.

Market Awaits Key Inflation Data

Investors are now looking ahead to Friday's release of the Personal Consumption Expenditures Index, the Fed's preferred inflation gauge. According to the CME FedWatch Tool, traders currently see an 83.4 percent chance of another 25-basis-point cut at the October meeting, down from about 92 percent just a day earlier.

Sector Performance and Intel Surge

While most sectors within the S&P 500 ended in the red, energy stocks gained 0.9 percent. The tech sector inched up 0.03 percent, boosted by Intel shares, which soared nearly 9 percent. The Wall Street Journal reported that the chipmaker has approached Taiwan Semiconductor Manufacturing Company with proposals for investments or potential partnerships.

Wall Street Closes Lower

U.S. markets ended Thursday in negative territory. The Dow Jones Industrial Average fell by nearly 174 points, a drop of 0.38 percent, finishing at 45,947.32. The S&P 500 lost 33.25 points, or 0.50 percent, closing at 6,604.72. The Nasdaq Composite slipped 113.16 points, also down 0.50 percent, ending the session at 22,384.70.

Corporate Earnings Under Scrutiny

Shares of consulting powerhouse Accenture declined 2.7 percent, even though the company reported revenue that topped Wall Street estimates. Investors remain cautious and are waiting for quarterly results from other major firms, especially after the market's recent record-setting rally that pushed valuations to elevated levels.

Fed Policy Debate Intensifies

Attention now turns to next week's monthly U.S. employment report, a key indicator that could influence the Federal Reserve's next move on interest rates.

Inside the Fed, disagreements persist. Stephen Miran, recently appointed to the central bank by President Donald Trump, has been vocal in urging a faster pace of monetary easing. By contrast, Fed Chair Jerome Powell reiterated earlier this week that the central bank must carefully weigh inflation concerns against signs of labor market weakness before making further decisions.

Indian Solar Firm Faces Scrutiny

Shares of India's Waaree Energies plunged 4.5 percent to 3,288.9 rupees on Friday. The decline followed news that U.S. customs officials are investigating whether the solar panel manufacturer sought to bypass tariffs on Chinese photovoltaic components by labeling them as Indian-made.

U.S. Customs Tightens Oversight

On Friday, U.S. Customs and Border Protection issued an internal memo stating it had credible reasons to suspect that Waaree failed to label certain imported products as subject to long-standing antidumping and countervailing duties. These tariffs have been in place for years to safeguard domestic industries.

Preventive Measures and Financial Deposits

The agency stressed that it is taking steps to protect U.S. revenue during the inquiry. As part of these measures, Waaree, a renewable energy company, has been required to place cash deposits while the investigation is underway.

Stock Performance

Despite the scrutiny, Waaree's shares have shown impressive momentum since entering the market. From their debut in October 2024, the stock has gained 37 percent.