Fueled by strong earnings from Apple Inc., the S&P 500 index rose higher at the open. Posting a daily high of 2825.83 led by technology and financial stocks, the index reversed gains as investors remained cautious ahead of the release of the FOMC (Federal Open Market Committee) statement.

Sentiment was further weakened by renewed trade tensions following news that the Trump administration plans to increase tariffs on $200 billion worth of Chinese goods to 25% from the previously announced 10%.

The index fell sharply in conjunction with the release of the FOMC statement, hitting a daily low of 2805.85 as the Federal Reserve signaled another imminent rate hike. Paring some of the losses as investors digested the Fed’s announcement, the index closed session lows at 2,813.36, down 2.93 points and losing 0.10% against the closing of the previous session.

The energy sector led the falls for the day, losing 1.33% in today’s session. Oil prices remained volatile and closed lower after an EIA (Energy Information Administration) report indicated a surprise increase in crude production of 3.8 million barrels for the week, along with a decrease in production. Chesapeake Power Corporation. led the fall in the sector, losing 5.72% after reporting a decline in revenue as a result of a drop in oil and gas sales.

Renewed concerns about the trade war affected the trade-sensitive industrial, materials, and consumer discretionary sectors. These sectors lost 1.28%, 0.97% and 0.44% respectively after the White House announced its plan to increase tariffs on $200 billion worth of Chinese goods to 25% from the announced 10%. previously. Hanesbrands Inc. was the worst performer on the index, falling 19.32% after reporting disappointing earnings.

Other notable losers were the utilities, consumer staples and telecommunications sectors, which fell 0.83%, 0.88% and 0.07%. On the other hand, gains in the Technology, Real Estate and Health sectors, which capped losses for the day, increased 0.97%, 0.70% and 0.05% respectively.

The financial sector broadly closed the session unchanged, reversing gains from the day after the release of the FOMC statement. The Federal Reserve left the interest rate unchanged but hinted at an imminent rate hike next month citing strong economic fundamentals. 10-year Treasury yields closed at 3.006%, crossing the psychologically important 3% mark for the first time since June.

Technology stocks continued their recovery, up 0.97% as Apple Inc. surged to record highs, gaining 5.89% intraday and nearing a $1 trillion milestone after the tech giant reported strong iPhone sales and higher guidance for the full year. The Real Estate and Health sector also closed higher, 0.70% and 0.05% respectively.

On the economic data front, private sector employment added 219,000 jobs in July compared to an expected 178,000 jobs. Meanwhile, the Institute for Supply Management ISM Manufacturing Index came in below expectations at 58.1% in July versus 59.5% expected. The drop was mainly due to a shortage of skilled labor and the higher cost of raw materials.