Fed Holds Rates Steady Amid Inflation Concerns; Big Tech Earnings Influence Market
U.S. stock futures rose slightly on Thursday as investors assessed the Federal Reserve's decision to keep interest rates unchanged and awaited earnings reports from major tech firms like Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META). The Fed left its benchmark rate at 3.5%–3.75%, but three policymakers supported a hike, reflecting ongoing inflation concerns driven by energy costs linked to the conflict in Iran. The Nasdaq 100 entered correction territory after falling more than 10% from recent highs, while chipmakers continued their decline amid doubts about long-term returns on AI infrastructure investments. Microsoft reported strong cloud and AI growth, whereas Meta's performance was mixed following its earnings release. Federal Reserve Chair Kevin Warsh emphasized that the decision to hold rates steady did not signal inaction if needed. Investor sentiment also remained cautious due to geopolitical tensions after renewed U.S. military strikes inside Iran and rising oil prices.
Topics: AI spending Big Tech earnings Federal Reserve interest rates semiconductors