U.S. markets ended the day mixed after the Federal Reserve decided to hold interest rates steady and indicated that a rate hike was not likely to happen soon. The Dow Jones Industrial Average rose slightly, while the S&P 500 and Nasdaq ended lower. Fed Chair Jerome Powell mentioned that progress against inflation has stalled, with prices remaining high across many sectors of the economy. Powell also stated that it is uncertain how inflation will be brought down in the future.
After Powell’s statements, the S&P and Nasdaq saw gains as investors were reassured that another rate hike was not imminent. However, the Fed also noted a lack of progress in reducing inflation, highlighting a significant change from last June. Corporate earnings were another major factor for the day, with Pinterest seeing a 20 percent increase in its shares after reporting strong sales and user growth. Starbucks, on the other hand, experienced a 16 percent drop in shares after disappointing earnings and a slowdown in sales following a boom during the pandemic.
Yum! Brands also reported a drop in same-store sales, leading to a 4 percent decrease in their shares. A trend is emerging among fast-food chains, indicating that consumers are becoming more cautious with their spending as prices remain high. Wingstop, however, saw a significant increase in same-store sales and a rise in their stock price. Trump Media & Technology Group, the parent company of Truth Social, experienced a 10 percent drop in shares after a recent increase. Apple and Novo Nordisk were set to release earnings, with the April jobs report scheduled for Friday morning.
Looking ahead, earnings highlights for the week include companies such as Apple, Novo Nordisk, Shell, Moderna, Berkshire Hathaway, and AMC. Newsweek aims to challenge conventional wisdom and find common ground by providing insights into the latest market trends and developments. The Federal Reserve’s decision to keep interest rates steady has impacted market performance, with investors reacting to uncertainties surrounding inflation and corporate earnings. Overall, the market remains mixed as companies navigate through changing economic conditions.
