Good morning! So, yesterday during his press conference, Federal Reserve Chairman Jerome Powell repeated a phrase that felt all too familiar: “I have nothing to say about that,” which he said at least five times to reporters.
This morning, stock futures showed minimal changes. The major indexes wrapped up yesterday’s trading with only slight gains.
Here are five key things investors should keep in mind as they start their trading day.
1. The Center of Attention
It’s no surprise that the Federal Reserve had all eyes on Powell yesterday. He announced that interest rates would remain unchanged. This was particularly notable since it marked his first press conference amidst a criminal investigation.
Key takeaways include:
- Powell characterized the economy as “solid” and asserted that current monetary policies aren’t viewed as excessively restrictive.
- As has become typical, not all committee members were aligned. Two governors, Stephen Millan and Christopher Waller, pushed for a quarter-point cut.
- When asked about the ongoing political controversies affecting the Fed, Powell mostly stuck to his line about not commenting.
- A source conveyed to CNBC that the Fed hasn’t yet complied with a grand jury subpoena related to the investigation.
- However, Powell did weigh in on Federal Reserve President Lisa Cook’s Supreme Court case, referring to it as “probably the most important case in the Fed’s 113-year history.”
- Interestingly, the S&P 500 index crossed the 7,000 mark for the first time yesterday but has since retreated.
- You can find live market updates ongoing here.
2. Tech Company Updates
Meta’s shares experienced an impressive increase of over 8% in after-hours trading following strong fourth-quarter earnings and promising revenue forecasts. Analysts are particularly interested in Meta’s investment in artificial intelligence, as noted by CNBC’s Jonathan Vanian.
That said, there was a less rosy aspect of the report. Meta’s Reality Labs unit suffered an operating loss of $6.02 billion, surpassing the expected loss. Furthermore, losses in their Metaverse-related business rose by 21% year-over-year.
Meanwhile, Microsoft saw a 7% drop in its stock overnight. Despite beating financial forecasts, concerns over slowing cloud growth and modest operating margins weighed heavily.
