Recent decisions by the Federal Reserve to adjust interest rates have sent ripples through global financial markets. In the U.S., major indexes like the Dow, Nasdaq, and S&P 500 showed minimal movement despite Micron's significant 16% drop due to weak fiscal guidance. The Fed's unexpected interest rate pause and prediction of fewer rate cuts in 2025 have left investors cautious.
Companies such as Accenture benefited from rising AI demand, while Vertex Pharmaceuticals suffered from disappointing drug data. Meanwhile, economic indicators showed positive signs, with faster U.S. economic growth and declining unemployment rates, which contributed to a stronger dollar.
Globally, Asian markets, including Japan and China, felt pressure following the Fed's cautious stance, with major indexes in these regions falling. Oil and cryptocurrency markets also faced declines, partly due to the Fed's policies and remarks by Fed Chair Jerome Powell on Bitcoin regulations.
Despite these economic challenges, analysts remain optimistic about certain sectors. Micron's long-term prospects in AI memory markets are considered strong despite current setbacks. Overall, the Fed's actions have underscored the delicate balance central banks must maintain in managing economic growth and inflation.
