Wall Street fell after Jerome Powell's remarks

U.S. stocks closed off their previous highs after a volatile session on Wednesday, as Federal Reserve Chairman Jerome Powell tempered expectations that the central bank would cut rates in September.

By keeping rates unchanged, as widely expected, the Fed stated that "the unemployment rate remains low and labor market conditions remain strong. Inflation remains somewhat elevated," in a split decision that included two governors who dissented.

Stocks rose slightly ahead of the Fed's statement as investors assessed the first reading of second-quarter economic growth, which was stronger than expected, but underlying details indicated an economy that is likely losing steam.

Stocks retreated after Powell said it was too early to predict whether the central bank would cut rates at its next meeting in September and noted that current monetary policy, while moderately restrictive, has not slowed the economy.

"There wasn't much change in the statement, still expressing concerns about how these tariff policies will be implemented and likely still not relying on the data that has been released," said JP Powers, chief investment officer at RWA Wealth Partners.

"If I were Powell, I don't know how much he thinks about his legacy, but I think he's going to err on the side of excessive pressure, probably too late to cut rates on his way out, rather than risking a spike just as the sunset approaches," he added.

The S&P 500 fell 0.12% to 6,362.95; the Nasdaq Composite gained 0.15% to 21,129.67; and the Dow Jones Industrial Average fell 0.38% to 44,461.28.

They fell

The Mexican stock market had a negative session on Wednesday, following the release of several local and international economic data. At the close of trading, the S&P/BMV IPC index of the Mexican Stock Exchange (BMV) lost 0.73% to 57,395.85 points, while the FTSE-BIVA, the most representative index of the Institutional Stock Exchange (Biva), fell 0.67% to 1,153.79 points.

The indicators fell for the second time in three sessions, although they remained near their best level in three weeks. Investors factored in the fact that Mexico's GDP grew more than expected in the second quarter, driven by positive performance in the industrial sector.

Public sector revenues grew in the first half of the year, combined with reduced spending, resulting in a primary budget surplus higher than estimated by the authorities.