The S&P 500 broke above 7,000 points after the Federal Reserve kept interest rates on hold and warned of rising inflation risks. The dollar strengthened, but Wall Street saw some instability. Countries may reduce exposure to U.S. assets amid a ‘Sell America’ narrative gaining traction.

Market moves included S&P 500 hitting a record high, while South Korea and Brazil extended rallies. Microsoft shares fell 7%, Meta rose 10%, Tesla climbed 4%, and IBM surged 11% after earnings reports. The dollar had its best day since November, while the euro had its worst day since August. Oil hit a 4-month high, and gold rose 4%.

The Federal Reserve’s meeting had a slightly hawkish tone, with inflation remaining elevated and the job market showing strength. Expectations of another rate cut by July exist, but a hike is not the base case. U.S. officials reaffirmed a ‘strong dollar’ policy, but concerns remain about the currency’s overvaluation.

U.S. tech companies like Meta, Tesla, and IBM reported positive results, but Microsoft disappointed investors. Job losses due to a productivity boom were announced by Amazon and UPS. Tech stocks have lagged in recent months, raising questions about market leadership and room for catch up.

Upcoming market movers include Japanese consumer confidence, meetings between Chinese and UK leaders, Eurozone sentiment indices, Sweden’s interest rate decision, U.S. Treasury auctions, weekly jobless claims, durable goods and trade data, and earnings reports from major companies like Apple and Visa.

Read more at Yahoo Finance: Fed almost incidental to market swirl