Stock market today: Nasdaq wavers, Dow, S&P 500, rise as Fed holds rates steady in split vote
US stocks edged higher on a critical day for markets, as investors digested the Federal Reserve’s 10-2 decision to hold interest rates steady and earnings results from Microsoft (MSFT) and Alphabet (GOOG) loomed.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) edged roughly 0.1% and 0.2%, respectively. The tech-heavy Nasdaq Composite (^IXIC) wavered near the flatline.
(^DJI)
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52,381.08+3.51(+0.01%)
As of 3:11:12 PM EDT. Market Open.
^DJI^GSPC^IXIC
Investor attention turned toward the Federal Reserve’s interest rate decision, where the Fed voted to keep its funds rate unchanged, despite elevated inflation readings. Cleveland Fed President Beth Hammack and Fed Governor Lisa Cook dissented, favoring a rate hike. Fed Chairman Kevin Warsh’s press conference will be closely watched for any signs of a hawkish bias. (Follow live updates from the meeting.)
Sentiment in the tech trade has markedly improved this week, with the S&P 500 and Nasdaq posting back-to-back gains. Semiconductor stocks drove the rally on Tuesday after Broadcom’s CEO negotiated with a consortium of banks to announce a $63 billion financing structure to build AI compute capacity.
They continued to gain on Wednesday after South Korean memory chipmaker SK Hynix (SKHY, 000660.KS) reported a 632% year-over-year profit increase. Micron (MU), Samsung (005930.KS), and other chipmaker stocks also rose.
Earnings season continues apace as two Big Tech giants and cloud leaders — Microsoft and Alphabet — deliver updates on AI demand and their capex plans after the bell. Microsoft’s report comes just after it offered buyouts to up to 60,000 employees as it tries to streamline operations amid the AI build-out.
Rounding out the earnings picture are Ford (F), GE Vernova (GEV), T-Mobile US (TMUS), eBay (EBAY), Chipotle Mexican Grill (CMG), and ServiceNow (NOW).
