S&P 500 slips a day after holiday as traders weigh next moves by the Fed and Trump: Live updates

Stocks fell on Friday as investors contemplated the next move from the Federal Reserve and monitored the latest developments out of the Middle East.

The S&P 500 declined 0.3%, while the Nasdaq Composite dropped 0.7%. The Dow Jones Industrial Average pulled back 19 points, or 0.1%.

Chip stocks came under pressure following a report by the Wall Street Journal that the U.S. may revoke waivers for some semiconductor manufacturers. Nvidia was down about 1%, while Broadcom and Taiwan Semiconductor Manufacturing each fell more than 1%. The VanEck Semiconductor ETF (SMH) was lower by almost 1%.

The S&P 500 started off the trading session higher after Federal Reserve Governor Christopher Waller said that the central bank could cut interest rates as early as July. “I think we’re in the position that we could do this and as early as July,” Waller said during a “Squawk Box” interview.

“That would be my view, whether the committee would go along with it or not,” he added.

This comes after Fed Chair Jerome Powell said Wednesday the central bank was in no hurry to cut benchmark rates and will remain data dependent, especially as it remains unclear how President Donald Trump’s tariffs will impact the economy. The S&P 500 closed slightly lower that day following those remarks.

Trump ripped into Powell again Thursday, saying the Fed Chair is costing the U.S. “hundreds of billions of dollars” by delaying rate cuts. The president said ahead of the Fed’s decision Wednesday that “stupid” Powell “probably won’t cut” rates.

Traders also bid stocks higher slightly as oil prices pulled back with Trump saying Thursday that he would decide whether to strike Iran within the next two weeks but wanted to allow for “a substantial chance of negotiations.” International benchmark Brent slid more than 2%, while U.S. crude was marginally higher.

Tensions around the Israel-Iran conflict still remained high, however, as Israeli Prime Minister Benjamin Netanyahu is reportedly ordering Jerusalem’s military to strike “strategic targets” in Iran, as well as “government targets.” Trump is weighing direct U.S. involvement with a strike on Tehran, with the White House on Thursday saying that he will make a final decision within the next two weeks. Trump previously called for Tehran’s complete surrender, to which Iran’s supreme leader, Ayatollah Ali Khamenei, labeled the notion “threatening and ridiculous.”

“There are several key questions to answer before we know how stocks will handle this geopolitical shock, including how much of Iran’s energy infrastructure will be impaired and for how long, whether Iran’s nuclear capabilities will be completely wiped out, and whether the current regime will remain in power,” said Jeff Buchbinder, chief equity strategist for LPL Financial.

For the week, the S&P 500 was higher by 0.2%. The 30-stock Dow has risen by 0.3% on the week, while the Nasdaq has jumped 0.5%.