Fed rate decision, stock market updates: Dow, Nasdaq, S&P 500 slip, Nvidia falls as Fed leaves rates unchanged

Published On Jan 29, 2025, 5:01 PM

The article discusses recent actions and statements from the Federal Reserve regarding interest rates and inflation, and how this has impacted stock markets, particularly tech stocks. The Fed maintained interest rates at 4.25%-4.5% and modified its inflation language, which caused some anxiety in the markets. Key technology companies like Nvidia, Tesla, Meta, and Microsoft released earnings reports that influenced investor sentiment, with Nvidia facing significant declines due to potential export restrictions to China and disappointing earnings from other tech firms dragging down their stock prices. The overall market sentiment remained cautious, with tech stocks leading the declines productivity-wise.

Stock Forecasts

NVDA

Negative

Nvidia faces headwinds due to governmental restrictions and competitive pressure from AI developments, which may hamper its growth and profitability in the short term. The company's recent downturn suggests caution among investors until clearer trends emerge from the earnings reports of its peers.

META

Negative

Metaverse platform concerns and higher spending forecasts led to a fall in Meta's stock, indicating potential challenges in maintaining growth and investor confidence. This suggests a negative outlook in the short term.

TSLA

Positive

Despite a volatile response to earnings, Tesla's popularity and resilient market presence suggest a recovery following initial investor skepticism. There is potential for positive sentiment as the company adjusts its strategies. Hence, a cautious but optimistic forecast seems reasonable.

MSFT

Positive

Despite missing revenue estimates, Microsoft's cloud sector has significant growth potential in AI infrastructure, which could buoy its stock in the long term. Investors might see opportunities in cloud-related tech investments, projecting a positive sentiment as the AI boom continues.

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Caution prevails with a Federal Reserve Interest rate decision and earnings from several tech giants in focus.

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NVDA
BABA
SBUX
META