Fed Holds Rates as Tech Earnings Split Markets

The Fed holds rates unchanged while mixed tech earnings and rising Treasury yields split global market sentiment Thursday.

US stock futures climbed Wednesday night after the Federal Reserve held interest rates unchanged at 3.75%, as expected, and investors processed a mixed batch of earnings from major technology companies. Dow futures rose 158 points, or 0.3%, while S&P 500 and Nasdaq 100 futures gained 0.4% and 0.7% respectively, pointing to a partial recovery after a bruising session on Wall Street.

The rebound followed a sharp sell-off during Wednesday’s regular trading. The Dow Jones Industrial Average tumbled 1,153 points, or 2.19%, marking its steepest single-day decline since April 2025. The S&P 500 dropped 1.52% and the Nasdaq Composite shed 1.74%, as investors reacted to a combination of earnings disappointments and renewed rate uncertainty.

Fed Holds Rates as Tech Earnings Split Markets

After the closing bell, technology earnings painted a divided picture. Meta Platforms fell 7% in extended trading after the company issued a weaker-than-expected revenue outlook, rattling investor confidence in its near-term growth trajectory. Microsoft, by contrast, surged 8% after robust Azure cloud growth impressed the market, underscoring the uneven returns that AI investment continues to generate across the sector.

The divergence between the two results highlighted growing investor scrutiny over how effectively major technology firms convert heavy AI spending into tangible revenue growth.

Treasury Yields Climb to Multi-Year Highs

Treasury markets drew significant attention after the Fed’s decision pushed yields higher. The 30-year Treasury yield climbed above 5.2%, reaching its highest level since 2007, while the US 10-year yield held at 4.701. UK gilts traded at 5.038 and German bunds at 3.156, reflecting broad sensitivity to the higher-for-longer rate narrative across global bond markets.

Asian markets traded mixed in response. Japan’s Nikkei 225 gained 1.18% while the Shanghai Composite slipped 1.15%. The Hang Seng edged 0.15% lower, and Australia’s S&P/ASX 200 declined 0.73%. Gold nudged 0.50% higher to $4,056.40, while silver fell 0.59% to $57.745. Brent crude eased 0.98% to $87.23, and WTI declined 0.91% to $83.69.

Key Data and Earnings Ahead

Investors now turn attention to a packed Thursday calendar. The Core PCE Price Index, the Federal Reserve’s preferred inflation gauge, lands at 12:30 PM GMT and will draw the most scrutiny. Second-quarter GDP figures and weekly jobless claims round out the data slate, together offering a comprehensive snapshot of economic momentum and labour market health.

On the earnings front, Bristol-Myers Squibb reports before the open, while Amazon, Apple, and Coinbase all deliver results after the closing bell, keeping corporate news firmly in focus throughout the session.

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