Markets fell after the Federal Reserve held rates steady, defying expectations for a hike, while Microsoft shares surged on strong quarterly results.
US stocks declined as investors grappled with the Federal Reserve’s decision to maintain interest rates, despite a 30% market probability of a hike. The Fed’s inaction contrasted with recent hawkish signals, fueling uncertainty among traders and algorithm-driven strategies.
Prior to the decision, consensus had leaned toward a pause, though some analysts anticipated a final rate increase. The Fed’s lack of forward guidance, highlighted by policymaker Kevin Warsh, added to market volatility. Meanwhile, Microsoft’s shares jumped following better-than-expected earnings, offsetting broader losses.
The divergence between macroeconomic policy and corporate performance underscored the session’s mixed sentiment, with tech gains failing to lift major indices.