HomeFinancial MarketsU.S. Stocks Mixed Ahead of Fed Interest Rate Decision

U.S. Stocks Mixed Ahead of Fed Interest Rate Decision

Stocks were mostly mixed on Wednesday morning as traders braced themselves for the Federal Reserve’s interest rate decision later in the day. Investors also awaited the next round of earnings reports in order to measure the health of the global economy.

The Nasdaq Composite Index, S&P 500, and Dow Jones Industrial Average all remained relatively unchanged, while in Europe, the Stoxx Europe 600 edged lower by 0.2%. The MSCI Asia Pacific Index was also little changed, while the MSCI Emerging Markets Index declined by 0.2%.

Markets are expecting the Federal Reserve to hike interest rates on Wednesday following June’s pause in monetary policy tightening. Strong consumer data suggests that further policy tightening may be needed to reduce inflation.

In terms of corporate earnings, Google’s parent company Alphabet rose 7% during late trading on Tuesday after reporting second-quarter earnings that beat expectations. Microsoft, in contrast, fell after reporting underwhelming sales growth.

“We are going to see some deceleration in corporate earnings, deceleration in economic growth, softening of demand, all of this will have a higher impact on equities,” Aarthi Chandrasekaran, director of investments at Shuaa Asset Management claimed. “The US economy is weakening but it’s not weakening enough to price in a full rate cut next year.”

Netflix’s Resilience Praised by Wall Street Analysts After Strong Q1 Earnings

Streaming giant Netflix continues to be championed by Wall Street analysts, who view the company as “resilient” in a tough economic environment after strong...

Fed to “Wait for Greater Clarity” Before Making Policy Adjustment Says Chair Jerome Powell

The Federal Reserve will wait to see the impact of recent sweeping tariffs on the U.S. economy before considering making policy adjustments, according to...

Oil Prices Will Decline Through 2026 According to Goldman Sachs

Oil prices will drop further this year, with the trend spilling over to 2026, according to Goldman Sachs. The investment bank forecasts that increased...