Federal Reserve Holds Interest Rates Steady; Microsoft & Meta Stocks Surge

Federal Reserve Interest Rate Decision

• 📌 The Federal Reserve decided to leave interest rates unchanged, a move that was largely anticipated.
• ⚠️ Notably, two Fed governors dissented from the decision, advocating for a quarter percentage point cut. This marks the first time in 32 years that two governors have voted against a committee decision.
• 💬 Fed Chair Jay Powell expressed that he was not overly concerned by the dissent, viewing it as a sign of thorough deliberation and clear articulation of differing viewpoints.

Impact of Tariffs on Markets

• 📈 Copper futures plunged by nearly 20% following President Trump's imposition of a 50% tariff on semi-finished copper products, though the scope was narrower than some expected.
• 📉 Ford Motor Company anticipates a profit fall of up to 36% this year, citing President Trump's tariffs as a contributing factor.
• 🗣️ Fed Chair Jay Powell indicated that the effects of tariffs on goods inflation are only just beginning to be seen, with consumers, businesses, and retailers expected to bear some of the cost.
• 🇨🇳 President Trump is expected to make a final decision on a tariff truce with China before the current agreement expires in two weeks.

Corporate Earnings and Stock Performance

• 🚀 Microsoft reported fourth-quarter revenue exceeding analyst estimates, leading to a more than 7% jump in its shares in post-market trading.
• 📈 Meta provided a stronger-than-expected third-quarter revenue forecast, signaling continued growth in its core advertising business and supporting aggressive AI spending, causing its shares to jump 10% post-market.

Global Economic Insights

• 🇨🇦 Bank of Canada Governor Tiff Macklem commented on the U.S. GDP report, noting that a significant drop in U.S. imports, which boosted U.S. GDP, corresponds to a large decrease in Canadian exports to the U.S.
• 🇺🇸 Treasury Secretary Scott Bassett suggested that the Chinese economic model may be imploding, citing a real estate crisis and indicating that China is on the defensive in trade talks.

Digital Health Initiative

• 💻 The Trump administration is encouraging Americans to upload personal health data to new apps run by private tech companies, with over 60 companies discussing a digital health ecosystem focused on conditions like diabetes and weight management.
• ⚠️ Experts have raised ethical concerns regarding privacy and security, despite official assurances.

Political News

• 🗳️ Former Vice President Kamala Harris announced she will not run for California governor, stating her public service will not be in elected office for now.