Stocks fell due to Fed's unchanged rates, negative corporate earnings, and future interest rate concerns

From Nasdaq: 2025-01-29 19:21:01

On Wednesday, the S&P 500, Dow Jones, and Nasdaq all closed lower, with futures also down. The Fed’s unchanged interest rates and negative corporate earnings impacted stocks, with Packaging Corp, Danaher, and Lennox Int. leading the losses. Starbucks and ASML Holding NV rose on positive earnings. Fed Chair Powell emphasized economic strength.

The FOMC kept rates steady and noted stable unemployment and solid labor conditions. US MBA mortgage applications fell, and earnings season saw technology giants reporting. Analysts forecast a +7.5% y/y growth in S&P 500 earnings for Q4. The markets give a 20% chance for a rate cut in March.

Overseas markets closed higher, with Euro Stoxx 50 and Japan’s Nikkei up. US 10-year T-note yields rose after the Fed’s hawkish stance. European bond yields also increased. Eurozone M3 money supply rose less than expected, and German consumer confidence fell. Swaps are pricing in a rate cut by the ECB.

In US stock movers, Packaging Corp and Danaher forecasted lower earnings, with Nvidia facing restrictions on chip sales. Moderna, Lennox Int., and MSCI Inc. all saw losses. ASML Holding NV, AMD, and Marvell Technology were among the gainers. F5 Inc. and Starbucks reported strong earnings, while T-Mobile US saw growth in new customers. General Electric and Norfolk Southern also closed higher.



Read more at Nasdaq: Stocks Fall on Hawkish Fed Pause