US Stocks Mixed as Fed Holds Rates Steady; Microsoft, Meta, Tesla Earnings Reviewed

Market Reaction to Federal Reserve Decision

• 📊 The Federal Reserve voted to keep interest rates steady, leading to wavering stock and bond markets.
• 📈 The S&P 500 closed slightly down, while the NASDAQ and Dow Jones gained modest points.
• 📉 Treasury yields remained at 4.23% for the ten-year and 3.57% for the two-year.

Fed Chair Powell's Statements

• 🗣️ Fed Chair Jay Powell indicated that policy could be loosened if tariffs lead to peaking and then declining goods prices.
• ⚖️ Powell stated that the case concerning President Trump's attempt to remove Fed Governor Lisa Cook is perhaps the most important legal case in the Fed's 113-year history.
• ⚠️ Powell advised the next Fed chair to stay out of elected politics.

Corporate Earnings and Stock Performance

• 📉 Microsoft reported second-quarter revenue that beat analyst estimates, but its shares fell over 7% in post-market trading.
• 📉 Meta's fourth-quarter revenue also beat estimates, yet its shares were down nearly 1.5% in post-market trading.
• 📈 Tesla shares rose 2.5% after market following fourth-quarter adjusted earnings that beat estimates.

US Dollar Policy and Trade

• 💰 The Bloomberg Dollar Spot Index rose a tenth of a percent after President Trump's comments had previously sent it tumbling.
• 🇺🇸 Treasury Secretary Scott Bessent reiterated the US's strong dollar policy, emphasizing regulatory and energy certainty to attract business.
• 🚫 The US is not intervening in the market for Japan's currency, according to Secretary Bessent.

Immigration Enforcement and Corporate Job Cuts

• 🚨 Two U.S. Border Patrol agents involved in a fatal shooting have been placed on administrative leave as scrutiny intensifies.
• 🏢 Amazon is cutting approximately 16,000 corporate jobs to reduce bureaucracy.

New Savings Program for Children

• 👶 The US government will launch Trump Accounts, a new savings tool where money is invested in the stock market for children until they turn 18.
• 💰 Eligible newborns born between January 1, 2025, and December 31, 2028, will receive a $1,000 seed investment, provided they are US citizens with a Social Security number.