US markets do not slow down – today investors live by the Fed decision, new economic data and the results of technological giants. See what really drives Wall Street and what signals flow from the American economy.
Fed in the spotlight
The Federal Reserve's decision to keep interest rates unchanged at 4.5% was widely expected by the market. Investors listened attentively to Jerome Powell’s comments, seeking guidance on future movements. Fed remains cautious of inflationary pressure and does not rush to loosen monetary policy despite increasing political pressure.
What does this mean for markets?
- Maintaining interest rates stabilizes stock valuation, but does not give clear signals about future cuts.
- Investors expect to ease their policies in the second half of the year if inflation starts to fall significantly.
Results of technology companies on candlestick
The season of results lasts at the best. Microsoft and AMD surprised positively – Microsoft owes growth to the development of Azure cloud services, and AMD showed better than expected quarterly results. On the other hand, Amazon was disappointed by the cloud segment, which translated into a drop in share rates despite solid results in other areas.
Macroeconomic data: mixed signals
The latest data from the labour market and inflation inspire mixed feelings. Unemployment remains low, but employment growth slows down. Inflation, though slightly lower than in previous months, continues to exceed the Fed target.
Key indicators today:
- Number of new applications for unemployment benefits: 241,000 (slight increase)
- Labour productivity growth: 1.5% sq/kw (better than forecasts)
- Labour costs are rising slower than expected – this could be a positive signal to fight inflation
Investor sentiments and prospects
After a series of growth sessions on Wall Street, today markets react cautiously. S&P 500 and Dow Jones have recorded the longest series of increases in 20 years in recent days, but there is now greater volatility and profit making.
- Fed keeps its feet unchanged, waiting for clearer economic signals.
- Technological giants continue to set the course, although there is no shortage of disappointment.
- Macro data is mixed – the labour market is solid, inflation is still challenging.
- Investors remain vigilant and seek new impulses for growth.
Today's events in the US markets show how many factors at the same time influence investor moods and decisions – from Fed policy to company performance to macroeconomic data.
