Markets Waver After Fed Holds Rates as Dollar Firms – US Market Wrap
US stocks and bonds fluctuated after the Federal Reserve opted to keep interest rates unchanged, with Chair Jerome Powell avoiding any signal that rate cuts will resume soon amid signs of a resilient economy. The dollar strengthened as Treasury Secretary Scott Bessent emphasized the benefits of a strong currency.
Bond markets were largely steady. After a technology-driven rally briefly pushed the S&P 500 above 7,000, equity gains faded. In late trading, Meta Platforms jumped after issuing an upbeat revenue outlook, though the company also said spending on data centers and artificial intelligence will exceed expectations. Microsoft shares fell following its earnings release.
The Federal Open Market Committee voted 10–2 to maintain the benchmark federal funds rate in a range of 3.5% to 3.75%. Governors Christopher Waller and Stephen Miran dissented, favoring a quarter-point cut.
US markets were largely unchanged, with the S&P 500 finishing little changed and the yield on 10-year Treasuries holding steady at 4.25%.
The dollar strengthened 0.4%. The Japanese yen dropped nearly 1% after comments indicating the US has not intervened to support the currency. Gold continued its advance, climbing above $5,300.
