After a recent meeting of the Federal Open Market Committee (FOMC), the Federal Reserve announced its decision to maintain the benchmark interest rate between 3.5% and 3.75%. This announcement followed a session where the S&P 500 briefly exceeded the 7,000 mark before closing the day largely unchanged. The Dow added a modest 12 points, while the tech-heavy Nasdaq Composite saw a slight increase of about 0.2%, supported by gains from companies like Nvidia and Micron Technology.
In the aftermath of the Fed’s decision, S&P 500 futures dipped by 0.2%, and Dow Jones Industrial Average futures fell by 145 points, or 0.3%. Meanwhile, Nasdaq 100 futures remained nearly flat. As the U.S. dollar continues to weaken, spot gold prices surged past the $5,500 threshold, reflecting an increase of nearly 2%. Gold, often regarded as a safe-haven asset, has gained momentum amid this economic climate.
In extended trading following the announcement, notable movements in tech stocks were observed. Meta Platforms experienced a significant rise of 7% after it reported an unexpectedly strong sales forecast for the first quarter. Conversely, Microsoft saw a decline of 6% as it reported slower cloud growth in its fiscal second quarter and offered softer guidance for its operating margin in the third quarter. Tesla’s shares edged up by 1% after the company reported fourth-quarter results that exceeded analysts’ expectations.
The FOMC’s post-meeting statement indicated that economic activity in the U.S. is continuing to expand at “a solid pace,” with some signs of stabilization in the unemployment rate. Despite this, the futures market is projecting two quarter-point rate cuts by the end of 2026, according to the CME FedWatch Tool. Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute, noted that while the Fed’s statement was largely in line with expectations, markets generally react to unexpected news. He added that investors are now looking to upcoming earnings reports and economic data to influence market movements, while also acknowledging potential volatility related to the midterm elections later in 2026.
Looking ahead, market participants are eagerly anticipating Apple’s fiscal first-quarter earnings report, set to be released Thursday after the market closes. In addition, major companies such as Mastercard, Caterpillar, and Lockheed Martin are also expected to announce their earnings soon. Economic indicators like weekly jobless claims, durable goods orders, and wholesale inventories will also be closely monitored by investors in the coming days.
