Bond Market Sends a Warning
The Federal Reserve kept interest rates unchanged for the seventh straight meeting.
But instead of calming markets, long term US Treasury yields surged, with the 30 year yield climbing to 5.23%, its highest level in 19 years.
Markets are now questioning whether inflation will stay higher for longer.
Tech Tries to Bounce Back
After days of heavy selling, Nasdaq futures recovered.
Microsoft jumped nearly 9% after reporting strong cloud growth, lifting sentiment across technology stocks.
Meta moved the other way, falling 7.5% in after hours trading after issuing a weaker than expected revenue outlook.
Chip Stocks Stay in Focus
The semiconductor selloff showed signs of easing.
Samsung gained after reporting a massive jump in chip profits, helping improve sentiment across Asian chip stocks.
But caution remains after weak outlooks from Qualcomm and Arm added fresh concerns about the industry’s growth.
Asia Sees Wild Swings
Asian markets remained volatile.
South Korea’s Kospi swung sharply between strong gains and losses before stabilising, reflecting how nervous investors remain.
Japan outperformed, while Chinese markets stayed under pressure.
Central Banks Take Centre Stage
Attention now shifts to the Bank of England and the Bank of Japan, with investors looking for clues on the next move in global interest rates.
The Fed’s lack of clear guidance has left markets guessing.
Oil Slips Despite Middle East Tensions
Oil prices fell even after fresh US strikes on Iran.
Investors remain more focused on economic growth and interest rates than geopolitical risks for now.
Corporate Watch
• Microsoft rallied after strong cloud earnings.
• Meta dropped after a disappointing revenue forecast.
• Samsung rose on a sharp jump in chip profits.
• Qualcomm issued a weak profit outlook.
• Arm’s sales forecast failed to impress investors.
• Starbucks raised its full year outlook after stronger than expected results.
What Investors Are Watching
The biggest question is no longer whether rates move today.
It is whether central banks can keep inflation under control without pushing markets into even greater volatility.