Markets pushed higher for the third consecutive session Wednesday as investors digested the Federal Reserve's decision to hold rates steady at 4.25-4.50%. The S&P 500 added 0.8%, with the Nasdaq leading at +1.2% on strength in semiconductor and AI-related names.
The move came as Chair Powell struck a balanced tone, acknowledging progress on inflation while signaling patience on future cuts. Treasury yields dipped modestly, with the 10-year falling to 4.18%.
Top Stories
NVIDIA Surges on Data Center Demand
NVIDIA shares jumped 4.2% after multiple hyperscalers confirmed accelerated capital expenditure plans for 2026. The company's dominance in AI training chips continues to drive outsized revenue growth, with analysts now projecting $150B+ in data center revenue for the fiscal year.
Apple's Services Revenue Hits Record
Apple reported services revenue of $28.4B for the quarter, beating estimates by $1.2B. The App Store, Apple TV+, and the growing advertising business all contributed to the beat. The stock rose 2.1% in after-hours trading.
Regional Banks Stage Comeback
The KRE regional banking ETF gained 3.5% as credit quality metrics improved across the sector. Net interest margins are stabilizing, and commercial real estate concerns have begun to ease with several large portfolio sales completed above expected recovery values.
Also Worth Knowing
- Oil Drops Below $68 — WTI crude fell 2.3% on higher-than-expected inventory builds and OPEC+ compliance concerns.
- Bitcoin Tests $95K — Crypto markets rallied on ETF inflow data showing $2.1B in net purchases over the past week.
- Jobless Claims Tick Lower — Initial claims came in at 215K vs 220K expected, suggesting labor market remains resilient.
- Dollar Index Weakens — DXY fell 0.4% as the Fed's dovish hold weakened the greenback against major pairs.
- Tesla Deliveries Beat — Q1 delivery numbers exceeded estimates at 495K units, driven by strong Model Y demand in Europe and China.
What to Watch
Tomorrow brings the January PCE inflation reading — the Fed's preferred gauge. Consensus expects core PCE at 2.6% YoY. A cooler print could accelerate rate cut expectations, while a hot number would validate Powell's patience. Also watch for month-end rebalancing flows, which could add volatility in the final hour.
The Bottom Line
The market is telling you it believes in the soft landing narrative, but the real test comes with Friday's inflation data. Stay positioned but stay nimble — the easy part of this rally may be behind us.