Stocks reached new highs on Tuesday but closed lower due to fading earnings optimism. Investors await the Fed’s policy decision. Retail investors are driving the market rally. The dollar strengthened, oil prices surged. U.S. goods trade deficit shrank, boosting Q2 GDP growth forecast. U.S.-China trade talks remain uncertain.

Wall Street eased as investors awaited the Fed’s meeting. Powell to address trade deals impact on growth and inflation. U.S. goods trade deficit shrank in May, boosting Q2 GDP growth estimate. IMF raised global growth forecast. U.S.-China trade talks uncertain. Dollar rose on U.S.-EU trade deal news.

Retail investors are fueling the market rally. Retail participation in S&P 500 flow at highest since February. Retail investors optimistic about equities. Fear of major correction grows as margin debt hits $1 trillion. Regulatory easing measures may benefit retail investors. Retail investors in the driver’s seat.

Key events for tomorrow: Australia CPI inflation, Japanese earnings, Euro zone GDP, U.S. GDP and PCE inflation, Fed policy decision, U.S. earnings reports. Stay informed with Trading Day newsletter. Opinions expressed are solely the author’s.

Read more at Yahoo Finance: Stocks stumble, dollar up as Fed looms