US stocks dip, dollar steady as traders digest Fed rate pause, tech earnings
By Lawrence Delevingne and Marc
Jones
Wed January 29, 2025 4:59 PM
Although it’s long been expected that the Fed would keep rates steady this month, the one thing the Fed did differently today was omitting the usual reassuring comments about inflation being on the right path or giving a potential timeline for the next cut. Instead it was a simple announcement of no change and that was enough to send all three indexes into a tailspin, the Dow down over 370 points by 2:30 which seemed to be the time that Microsoft turned in its good Q4 report which in turn sent the market into a rebound.
But it was not enough to get out of negative territory with the Dow and Nasdaq closing with 3-digit losses. Tesla’s Q4 was anemic as well as Meta’s Q1 forecast disappointing. The Fed cited inflationary concerns over Trump’s proposed tariffs as well as the overall good health of the economy combined with robust consumerism as the basis for their caution even though none of that was certainly news. Harsh tariffs are expected to hit Canada and Mexico on Saturday. The Magnificent Seven’s share of the S&P has risen from slightly under 10% ten years ago to just over 30% today. Per the CBOE, volume came in at 13.3 billion, still well below the 15.5 billion average.
DJ: 44,850.35 +136.77 NAS: 19,733.59
+391.75 S&P: 6,067.70
+55.42 1/28
DJ: 44,713.52 -136.83 NAS: 19,632.32
-101.26 S&P: 6,039.31
-28.39 1/29
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