Fed Rate Decision Dissent, Meta Weak Guidance, and Chipotle Earnings Highlight Morning Squawk
The Federal Reserve held interest rates steady amid notable dissent from three members who favored a rate hike. This has raised questions about whether the Fed will raise rates in September as inflation remains a concern. The lack of forward guidance left investors uncertain about future policy moves, with bond yields rising sharply and stock indices falling significantly. Meta Platforms reported weaker-than-expected earnings and revenue guidance for the current quarter due to heavy spending on AI infrastructure, causing its shares to drop 10% pre-market. In contrast, Microsoft outperformed expectations and saw a nearly 9% rise in share price after reporting strong results and increased capital spending. Chipotle raised its same-store sales forecast following better-than-expected second-quarter performance, leading to a 6% jump in shares despite some cautionary notes.
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Topics: Federal Reserve inflation interest rates stock market reaction