Stock Futures Steady as S&P 500 Celebrates First Gain in Three Days Post-Fed Decision: Get the Latest Live Updates!

Market Response to Fed’s Decision

On Wednesday night, stock futures barely moved following the Federal Reserve’s decision to keep interest rates steady. Investors are on alert, especially with rising inflation and unemployment concerns.

Specifically, S&P 500 futures dipped by 0.1%, while Dow Jones futures dropped 55 points. Nasdaq-100 futures were also slightly lower. The Fed maintained its benchmark overnight borrowing rate at 4.25% to 4.5%, unchanged since December.

The Fed acknowledged growing uncertainty in its post-meeting statement. "The risks of higher unemployment and inflation have risen," it stated, showing awareness of the tricky economic landscape ahead.

Fed Chair Jerome Powell highlighted that the bank is cautious about making any drastic moves, such as a rate cut. Inflation is still above target, making any preemptive actions risky. He emphasized that the Fed needs more data before deciding on its next steps.

Chris Zaccarelli, Chief Investment Officer of Northlight Asset Management, noted that the Fed is in a difficult position. "With worry about both inflation and economic slowdown, they’re facing pressure from different sides," he shared. This uncertainty has led to increasing concerns about a potential recession.

Investor Reactions and Market Trends

After the Fed’s announcement, the S&P 500 initially swayed but ended the day up 0.43%, largely thanks to a notable surge in Nvidia shares. The tech company’s stock rose over 3% after news that the Trump administration might ease trade restrictions on semiconductors. This development positively impacted the tech-heavy Nasdaq, which gained 0.27%, while the Dow saw a rise of 0.7%.

As traders watch closely, key economic reports are due on Thursday. Weekly jobless claims will be released at 8:30 a.m. ET, along with the New York Fed’s consumer expectations survey later in the day. These reports could influence market sentiment further.

Earnings announcements are also on the horizon. Energy giant ConocoPhillips and media company Warner Bros. Discovery are both set to report their results before the market opens, while Paramount Global and Expedia will share updates after trading closes.

Shares of AppLovin soared over 13% in after-hours trading after exceeding analysts’ expectations for quarterly earnings. In contrast, Arm Holdings fell over 11% due to disappointing guidance.

Broader Economic Context

Historically, the economy has faced similar crossroads. For example, during the late-2000s financial crisis, the Fed had to balance inflation concerns with economic recovery. The current situation reflects these past challenges, emphasizing the delicate dance the Fed must perform.

As the situation evolves, staying informed is crucial. Investors will be keenly monitoring these developments, looking for signs of what lies ahead.

For more detailed insights and analysis, consider checking out the Federal Reserve’s official statements and reliable economic reports.

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