Market Volatility Continues as Fed Holds Rates Steady
The Federal Reserve’s decision to keep interest rates unchanged has sent ripples through the market, with tech stocks leading the decline. The Nasdaq Composite fell over 0.8%, while the S&P 500 and Dow Jones Industrial Average also saw losses.
Fed’s Hawkish Tone Sparks Concern
The Fed’s statement removed language indicating progress towards its 2% inflation goal, instead stating that “inflation remains somewhat elevated.” This shift in tone has led investors to price in a higher chance of rate hikes in the future.
Nvidia Struggles Amid AI Concerns
Nvidia’s stock fell over 6% after a report suggested the Trump administration may impose additional curbs on its chip exports to China. This comes amid concerns about the rise of cost-effective AI models, such as DeepSeek, and their potential impact on Nvidia’s business.
ASML Surges on Strong Earnings
ASML, a key toolmaker in the AI chip chain, saw its stock rise 5% after reporting better-than-expected earnings and strong order bookings. The company’s CEO believes that the rise of AI will drive demand for its advanced tools.
Earnings Season Heats Up
Investors are bracing for a busy earnings season, with Tesla, Meta, and Microsoft set to report results after the bell. The market will be watching closely for signs of growth and reassurance that Big Tech’s heavy AI spending will pay off.
Trump’s Tariff Threats Weigh on Markets
Donald Trump’s pick for commerce secretary has hinted at the use of broad, country-by-country tariffs to address economic issues, including the protection of America’s artificial intelligence lead. This has sparked concerns about the potential impact on trade and the economy.
Starbucks Shines with Strong Earnings
Starbucks’ stock rose over 5% after the company reported strong quarterly results, driven by improved sales trends in the US and efforts to speed up mobile orders.
AI Leader Nvidia Faces Whipsaw Trading
Nvidia’s stock has seen wild swings this week, with a record $589 billion market cap loss on Monday followed by a rebound on Tuesday. The stock fell again on Wednesday, highlighting the uncertainty surrounding the AI chipmaker’s future.
Fed Chair Powell’s Press Conference Looms
Investors will be closely watching Fed Chair Jerome Powell’s press conference for answers to key questions about the Fed’s stance on interest rates and the impact of Trump’s policies on the economy.
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