Tech Giants Hold the Market's Fate Amid Fed Stasis

U.S. equity indexes fell and Treasury yields rose as the Federal Reserve held interest rates, leaving future rate decisions unclear. Attention shifts to tech giant earnings, while chipmaker ASML boosts Europe's tech sector. Traders focus on Trump's tariff threats and Bitcoin potentially joining central bank reserves.

U.S. equity indexes fell and Treasury yields rose on Wednesday following the Federal Reserve's decision to keep interest rates unchanged, offering little insight into potential future reductions in borrowing costs.

With inflation data stable, the Fed dropped language about progress towards a 2% inflation goal, acknowledging only that inflation remains elevated. Top economist Jeffrey Roach noted that strong consumer spending and business expansions make it challenging for the Fed to reduce rates without risking further inflation.

The Dow Jones, S&P 500, and Nasdaq each posted declines, while Europe's tech sector gained from strong chip maker results. Investors now await earnings from major tech firms including Meta, Microsoft, and Tesla. Bitcoin saw gains after the Czech central bank announced potential plans to invest in the cryptocurrency.

(With inputs from agencies.)