The Nasdaq and other major indices declined following the Federal Reserve’s first meeting of the year, with the tech-heavy index falling 1.1% by the afternoon as investors digested the central bank’s cautious stance on interest rates.
The Federal Open Market Committee kept the overnight borrowing rate unchanged in the 4.25% to 4.50% range and signaled continued caution about potential rate cuts, with recent economic indicators showing mixed signals. “Recent indicators suggest that economic activity has continued to expand at a solid pace,” the FOMC said in a statement. “The unemployment rate has stabilized at a low level, and labor market conditions remain solid.”
The Dow Jones Industrial Average and the S&P 500 dropped by 0.5% and 0.8%, respectively.
Nvidia (NVDA-5.39%), a key player in the AI sector, continued to decline, falling by 6% Wednesday following a massive selloff triggered by DeepSeek. Other AI stocks, including Super Micro Computer (SMCI-0.43%), Micron (MU+0.51%), and Taiwan Semiconductor Manufacturing (TSM+0.12%), also saw losses.
Investors are now closely monitoring the earnings reports from Tesla (TSLA-2.05%), Meta (META+0.47%), and Microsoft (MSFT-0.55%), which are due after the market’s close.
Shares of coffee giant Starbucks (SBUX+9.50%) jumped over 8% following its earning reports.
The Starbucks ceramic mug hype is real – so much so that CEO Brian Niccol mentioned it three times during the company’s Jan. 28 earnings call.
The return of the coffeehouse classic is part of Niccol’s broader “Back to Starbucks” strategy, which aims to reestablish the company as a premium coffee brand. This move comes as the company grapples with a slight sales decline, though it exceeded Wall Street’s revenue expectations.
“We reintroduced ceramic mugs and handwritten notes on cups to better connect with customers and elevate the cafe experience for those who choose to stay and work,” Niccol said during the earnings call.
Trump Media & Technology Group (DJT+7.56%) (DJT) shares surged over 7% Wednesday after announcing plans to expand into financial services, including potential investments in Bitcoin and other cryptocurrencies.
The company, majority-owned by President Donald Trump, unveiled a new fintech brand, Truth.Fi, which will launch with up to $250 million. These funds, custodied with brokerage firm Charles Schwab (SCHW+0.82%), will be allocated across customized exchange-traded funds, cryptocurrencies, and other investment vehicles.
— Francisco Velasquez contributed to the article
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