US Stocks Close Mixed After Fed Decision; Tech Earnings Boost Market

Federal Reserve Policy and Market Reaction

• ⚠️ Fed Chair Jay Powell indicated a "two-sided risk" situation, suggesting continued data monitoring before any September policy decisions.
• 📉 Market expectations for a September rate cut significantly decreased, despite President Trump's public statements.
• 📈 Bond traders saw a notable increase in 10-year yields, while the dollar strengthened for a fifth consecutive session.
• 📊 The S&P 500 closed down 0.1%, marking the worst Fed day for stocks and bonds since December.

Tech Earnings Drive Market Sentiment

• 💡 Microsoft reported strong earnings, with revenue at $76.44 billion, beating expectations, and Azure cloud revenue up 39%.
• 🚀 Microsoft's CEO highlighted Cloud and AI as key drivers of business transformation, with Azure surpassing $75 billion in revenue.
• 📱 Qualcomm provided a revenue outlook above street expectations, signaling resilience in the smartphone sector, particularly for high-end phones.
• 📉 Despite positive outlooks from some chipmakers like Qualcomm, others like Texas Instruments and Intel offered more cautious forecasts.

Corporate Earnings and Guidance

• 🚗 Ford reinstated its full-year guidance, expecting adjusted EBIT between $6.5 to $7.5 billion, but noted a tariff headwind of approximately $2 billion.
• 💰 Meta shares surged in after-hours trading following strong third-quarter revenue and EPS beats, with a positive outlook for 2025 total revenue.
• 📊 ARM shares fell after forecasting lower-than-expected profits and increased spending, with fiscal second-quarter earnings projected between $0.29 to $0.37 a share.
• 📈 eBay saw its shares rise after reporting third-quarter guidance above street estimates and beating expectations for the most recent quarter.
• 💸 Robinhood shares were up in after-hours trading, driven by a strong second-quarter adjusted EBITDA and net revenue beat.

Broader Market Trends

• 📉 Cyclical and economically exposed sectors, such as the Dow transports, experienced significant declines.
• 💲 The dollar rose for a fifth straight session, indicating continued strength against other currencies.
• 🖲️ The VIX remained elevated, reflecting ongoing market volatility and uncertainty.
• ⚖️ Investors are leaning on resilient economic growth, an AI-fueled earnings boom, and manageable inflation expectations despite tariff concerns.