Wall Street Holds Steady After Fed Decision
New York – The financial markets showed little reaction Wednesday after the Federal Reserve decided to keep interest rates unchanged, a move widely anticipated by investors.
Both the U.S. stock and bond markets experienced minimal movement, while the dollar found stability after its recent decline. Gold prices continued to climb, reaching new record highs.
The S&P 500 saw hardly any change, dipping slightly by less than 0.1% from its peak. The Dow Jones Industrial Average gained 12 points, also less than 0.1%, and the Nasdaq composite increased by 0.2%.
Seagate Technology stood out with a 19.1% jump, the largest in the S&P 500, after reporting higher-than-expected profits. CEO Dave Mosley attributed this growth to demand from artificial intelligence applications.
Nvidia, a key player in the AI sector, rose by 1.6%, significantly boosting the S&P 500. The company also benefited from a positive report from ASML, a chip-making machinery manufacturer.
ASML projected strong revenue for 2026, exceeding analysts’ forecasts. CEO Christophe Fouquet noted increased confidence among customers regarding the long-term demand for AI, easing concerns about a potential market bubble.
On the downside, Amphenol’s stock fell by 12.2% despite reporting better-than-expected profits. The company, which produces fiber-optic connectors, faced high expectations after a 23% surge earlier in the year.
Companies across the market face pressure to deliver solid profit growth after recent stock price increases. Earnings growth is seen as necessary to justify current valuations.
Apple shares declined by 0.7% ahead of its earnings report on Thursday, impacting the S&P 500 due to its large market presence.
Overall, the S&P 500 decreased by 0.57 points to 6,978.03. The Dow Jones Industrial Average rose by 12.19 points to 49,015.60, and the Nasdaq composite increased by 40.35 points to 23,857.45.
Treasury Secretary Scott Bessent said in an interview on CNBC that the U.S. government is not intervening in the currency market and continues to want a “strong dollar.” The dollar’s value against other currencies has been a point of concern.
Treasury yields remained steady following the Fed’s decision. The Fed previously lowered rates to support the job market, but inflation remains above the 2% target. The Fed’s chair, Jerome Powell, said that interest rates look to be “in a good place” at the moment.
The yield on the 10-year Treasury held at 4.24%.
Gold prices continued to rise, reaching $5,340.20 per ounce, as investors sought safe-haven assets.
European markets declined, while Asian markets showed strong performance, with South Korea’s Kospi rising by 1.7%.
