Fed Expected to Raise Rates by Quarter-Percentage Point, Wall Street Cautious About Future Actions and Big Tech Earnings Impact Market

‎Market Mixed Ahead of Fed Decision After Big Tech Earnings Reports

^{Credit: Google}

The Federal Reserve plans to increase interest rates by 0.25%, reaching 5.25%-5.5%, the highest level since 2001, in response to ongoing inflation concerns. Wall Street remains cautious about the central bank’s future moves amid a resilient economy. Big Tech earnings reports have been mixed, with Alphabet’s cloud revenue growth boosting its stock while Microsoft and Snap’s negative guidance impacts investor sentiment. Additionally, a potential global grain shortage looms as Russia withdraws from a critical grain export deal with Ukraine, leading to rising food and fuel prices. Market reactions await Fed Chairman Jerome Powell’s press conference for further insights on economic prospects.

The Federal Reserve increased interest rates by a quarter of a percentage point and signaled it could pause further hikes. The decision lifted the bank's benchmark overnight interest rate to the 5.00%-5.25% range, the highest level in 16 years. Read more https://t.co/8yLDaKviNj pic.twitter.com/jcaVFoCnbu
— Reuters Business (@ReutersBiz) May 4, 2023