Fed Holds Steady: Interest Rates and Inflation Concerns Dominate Market Moves

U.S. equity markets dipped as the Fed held rates steady and offered little guidance on future cuts. While U.S. inflation remains high, businesses and consumers are active. Microsoft exceeded earnings expectations, while Tesla and Meta fell short. Global markets and currencies showed mixed results.

U.S. equity indexes dipped slightly on Wednesday following the Federal Reserve's decision to maintain current interest rates. The Fed provided limited indications on potential rate reductions, amid ongoing inflationary pressures.

Despite businesses expanding and consumer activity robust, financial markets found little comfort, with the Dow Jones dropping 0.3%, and both the S&P 500 and Nasdaq falling approximately 0.5%. Microsoft's strong earnings report provided a glimmer of hope, but Tesla's profit margins failed to meet predictions, and Meta's revenue outlook disappointed.

Globally, European shares rallied due to Dutch chipmaker ASML's performance, while U.S.-China tensions loom over tariffs. In bonds, U.S. Treasury yields remained stable, and oil prices hit new lows. The Czech Republic's central bank considered bitcoin investment amid fluctuating gold prices.

(With inputs from agencies.)