The Dow Jones Industrial Average dipped 13.96 points to 52,305.24, while the S&P 500 and Nasdaq Composite fell 0.22% and 0.66% respectively. Warsh noted that inflationary pressures have softened since the last Fed meeting, adding that productivity gains from artificial intelligence could reshape the long-term outlook for monetary policy. His comments arrive as National Economic Council Director Kevin Hassett warned that raising rates during a supply-driven boom would be a macroeconomic error.

Corporate activity remained the primary driver of volatility. General Mills climbed 8.5% following successful price cuts, and Meta surged 8.8% on reports of a new cloud computing venture. Conversely, Alcoa shares dropped 8.9% following a $5.6 billion acquisition announcement, and Getty Images retreated after a failed merger bid. Meanwhile, the labor market showed signs of cooling as ADP reported 98,000 new private-sector jobs in June, falling short of the 110,000 anticipated by economists. With the yen hitting a 40-year low against the dollar, traders are bracing for potential currency intervention while shifting focus toward Thursday’s government payroll data.