2026.01.2819:10:33UTC+00US Stocks Hold Muted Gains After Fed

On Wednesday, U.S. equity indices experienced modest gains following the Federal Reserve's decision to keep interest rates steady, aligning with market expectations. This comes in anticipation of the forthcoming earnings reports from major artificial intelligence companies set to be released after the market closes. The S&P 500 and the Dow Jones Industrial Average saw slight increases, with the S&P surpassing the significant milestone of 7,000 for the first time ever. Meanwhile, impressive performances from semiconductor manufacturers contributed to a 0.4% rise in the Nasdaq 100. The Federal Reserve opted to pause its cutting cycle, acknowledging potential risks both from inflationary pressures and rising unemployment, and sustaining market speculation that there might be two rate cuts this year. Texas Instruments surged by 8% following better-than-expected results, which also bolstered Micron and Intel shares, leading them to rise between 6% and 12%. Additionally, this positive trend was supported by robust order numbers for ASML. Ahead of their earnings releases, Microsoft, Meta, and Tesla shares remained relatively stable. Beyond the technology sector, Starbucks saw a 6% increase in its stock value, while AT&T climbed by 5% post-earnings announcements.