Market

US Stock Market Dips as Federal Reserve Holds Interest Rates Steady Amid AI Market Concerns

Market Reaction to Federal Reserve's Decision

In a move that left investors on edge, the United States stock market experienced a downturn as the Federal Reserve decided to maintain interest rates within the 4.25% to 4.50% range. This decision comes amidst a cautious approach by Fed Chair Jerome Powell, who emphasized the committee's vigilant monitoring of the AI-driven market sell-off and its reluctance to hastily adjust its policy stance.

Earnings Reports on the Horizon

Attention now turns to the upcoming earnings reports from major corporations, including Microsoft, Meta, Tesla, IBM, and Levi Strauss. These reports are highly anticipated and could provide further direction for the market in the coming days.

Stock Market Performance

The Dow Jones Industrial Average saw a decline of 0.31%, with Nvidia experiencing a significant drop of 4.03%. Similarly, the Nasdaq 100 decreased by 0.24%, impacted by Datadog Inc.'s 4.06% fall. The S&P 500 wasn't spared, dropping 0.47% as Packaging Corp took a hit with a 9.77% decrease.

Currency Exchange Rates

On the currency front, the euro remained steady against the dollar, trading at 1.04118 at 3:59 pm ET.