New York (AP) – The US stock indices slipped on Wednesday after the Federal Reserve decided not to reduce interest rates for the first time since it tried to lend a hand the economy in September with simpler interest rates.
The S&P 500 fell by 0.5%after the generally expected decision of the Fed. The Dow Jones Industrial average fell 137 points or 0.3%and the NASDAQ composite fell by 0.5%.
According to the decision of the FED, the reaction was also relatively steamed, which could take the rates that could remain in the queue after their rapid decline after the end of 2024, but the disadvantage is that they are also inflation could lend more fuel.
The chairman of Fed, Jerome Powell, said after the decision that the central bank could reduce interest if inflation would continue to ponderous down or if the labor market is suddenly weakened. “At the moment we don’t see that and we see things like a really good place for politics and for the economy, so we feel that we don’t have to be in a hurry to make any adjustments.”
While Wall Street almost always prefers lower interest rates, “we would continue to concentrate on why the FED is not as quickly as a strong economy and work that is good for a solid corporate result growth,” said Sameer Samana, Senior Global Market Seat at Wells Fargo Investment institutes.
The relatively placid movements on Wednesday for the financial markets offered after two days of the disorder, which were driven by doubts about the boom for artificial intelligence.
A Chinese time setup, Deepseek, has raised almost existential questions for some of the AI ​​industry after saying that a gigantic model with the best in the world could compete without having to operate top featherlight chips.
This allows doubts as to whether the AI ​​development on the whole will require so many expenses for chips, huge data centers and electricity as Wall Street and Big Tech assumed. This in turn has caused major fluctuations for stocks in the entire industry, especially for Nvidia.
The company, whose share has almost become a symbol for the AI ​​Bonanza, fell by 4% on Wednesday after he had fallen almost 17% on Monday and rose almost 9% on Tuesday. It was the heaviest weight that pulled the S&P 500 deeper.
Large profits for NVIDIA and other gigantic technology companies were significantly involved in the rally of the S&P 500 in order to gain more than 20% for the first time since the millennium. Nvidia alone made up more than one fifth of all S&P 500 return last year.
Elsewhere on Wall Street, Starbucks rose by 8.1%after making a better profit than expected analysts for the recent quarter. CEO Brian Niccol said that the chain is planning to reduce its food and beverage offers by 30% in the course of this year in order to simplify the operation and speed service, which to simplify part of its efforts to turn the company.
The US T-Mobile achieved 6.3%after the Wall Street expectations had exceeded both profit and sales in the past three months of 2024. It is also expected that you will insert between 5.5 and 6 million postpaid customers this year.
Brinker International rose by 16.3%after the company provided better results than expected behind Chilis. CEO Kevin Hochman said Chili put on recent customers and his return customers came more often.
The railway operator Norfolk Southern rose by 1.8%after defeating Wall Street for the winning forecasts. There is also a growing optimism that a congress controlled by Republicans could reduce restrictions in the industry.
Frontier Group Holdings rose by 5.3%after she announced that it would try to merge a second time to merge with Spirit Airlines, who applied for bankruptcy protection at the end of last year. According to Frontier, the proposed contract would include newly issued Frontier debt and ordinary shares.
The Trump Media & Technology Group Rose after announcing that she would go down in the financial services business with Charles Schwab via a partnership. TMTG said that further details would be published in the course of this year, and what was a double -digit profit for an escalate of 6.8%for the notoriously volatile existence.
At the end of the Wall Street, Danaher, which fell by 9.7% after the Biosciences, Biosciences, Biosciences and Diagnostics, reported the results for the recent quarter in which the expectations of the analysts were just missed.
In total, the S&P 500 fell by 28.39 points to 6,039.31. The Dow Jones Industrial Average dropped 136.83 to 44,713.52, and the Nasdaq Composite dropped 101.26 to 19,632.32.
On the bond market, the 10-year ministry of finance took place at 4.53%, where it was slow Tuesday.
The indices in Europe were mixed in the stock markets abroad. ASML’s share in Amsterdam rose by 5.6%after announcing a forceful turnover at Demand after his advanced chipmaking tools.
In Asia, where many markets were closed for vacation, Japan’s Nikkei 225 rose by 1%.
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AP writers Matt Ott and Zimo Zhong contributed.
