Investors are awaiting the Federal Reserve's latest interest rate decision. The market widely expects the federal funds rate to remain unchanged at 3.50% to 3.75%. More than the outcome itself, the market is focused on Chairman Kevin Warsh's comments on inflation trends and the scope for further rate cuts.
Interest rate determination becomes the primary variable in the market.
With interest rates likely to remain unchanged, policy wording becomes a key focus for trading. If the Federal Reserve releases a clearer assessment of inflation or provides more clues about the pace of future rate cuts, short-term volatility in stocks, crypto assets, and other risky assets could increase.
Microsoft and Meta release their results after hours.
After the US stock market closes, Microsoft and Meta will release their latest earnings reports. Market focus will be primarily on several key indicators: whether AI-related spending continues to rise, whether cloud business growth remains resilient, whether advertising revenue performance is robust, and whether profit margins are under pressure.
- Microsoft: Cloud Business Growth and AI Investment
- Meta: Changes in Advertising Revenue and Profit Margin
- Two companies: The impact of capital expenditures on market expectations
Stock and crypto markets await new guidance
The convergence of these two events suggests that the market's short-term direction may receive a clearer signal on the same day. If the Federal Reserve adopts a dovish stance while large technology companies deliver solid results, risk appetite may rebound; conversely, if policy stances are cautious or earnings reports fail to support high valuation expectations, market sentiment may weaken.
For the crypto market, interest rate expectations and the performance of large-cap tech stocks remain important external variables. Especially during periods where AI trading and growth stock sentiment dominate risk appetite, macroeconomic signals and tech earnings reports often influence fund flows in tandem.
