(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.)
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Alphabet climbs on Q2 profit beat
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Microsoft slides as AI spending grows faster than revenue
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Boeing climbs as Q2 cashflows surge
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Fed raised rates by 25 basis point
(Updated at 4 p.m. ET/2000 GMT)
By Carolina Mandl and Bansari Mayur Kamdar
July 26 (Reuters) - U.S. stocks ended Wednesday little changed following a Federal Reserve rate hike that pushed borrowing costs to their highest since the global financial crisis.
The Fed lifted its benchmark overnight interest rate by a widely expected 25 basis points, marking the 11th hike in the U.S. central bank's past 12 policy meetings.
Fed Chair Jerome Powell said in a press conference the central bank will make decisions meeting by meeting, closely watching economic data, but noted that a rate cut is very unlikely this year.
Goldman Sachs said in a note to clients that the Fed's statement did not signal a slower pace of hikes in the future, but that the bank was expecting a hold in September.
"The message for the market was that it didn't move the needle. There's always a fear of a big surprise," said Angelo Kourfafas, investment strategist at Edward Jones.
Powell's message was clearly that the Fed will wait and see economic data to make new decisions, said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management. "I think the Fed won't stop until they see wage inflation down."
Following long-awaited earnings on Tuesday, big tech companies' shares had mixed reactions.
Microsoft eased after laying out an aggressive spending plan to meet demand for its new artificial intelligence (AI)-powered services. The Windows maker still surpassed estimates for quarterly revenue and profit.
Alphabet gained after the Google parent's second-quarter profit exceeded Wall Street expectations on steady demand for its cloud services and a rebound in advertising.
The NYSE FANG+ index, which houses many megacap growth names, dropped. The index has rallied roughly 75% so far this year on optimism over AI and hopes that the Fed is nearing the end of its rate hiking cycle.
"After extreme gains so far this year in big tech stocks, we have now moved to a phase where each company's stock price is very non-correlated to one another," said David Bahnsen, chief investment officer of the Bahnsen Group.
"This is indicative of the selectivity we are seeing in big tech after such a stock price surge so far this year."
Meta Platforms rose after Alibaba's cloud unit said it would support the Facebook owner's open-source AI model, Llama. Meta is also expected to report quarterly results after the bell.
As of Wednesday, 77.6% of the 152 companies listed on the S&P 500 that have reported earnings have beaten analysts' expectations as compiled by Refinitiv.
According to preliminary data, the S&P 500 gained 0.09 points, or 0.00%, to end at 4,567.55 points, while the Nasdaq Composite lost 15.94 points, or 0.12%, to 14,128.62. The Dow Jones Industrial Average rose 89.63 points, or 0.25%, to 35,527.70.
The Dow seesawed, underpinned by a gain in Boeing after the planemaker posted a smaller-than-expected quarterly loss, along with a surge in cash flows.
Snap sank after the photo messaging app owner gave a weaker-than-expected third-quarter forecast as it struggles to compete with tech giants for advertising dollars.
Union Pacific gained after the railroad operator appointed Jim Vena as chief executive to succeed Lance Fritz.
Wells Fargo climbed after the bank's board authorized a new share buyback program of up to $30 billion.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Savio D'Souza, Anil D'Silva, Maju Samuel and Richard Chang)
The Link LonkJuly 27, 2023 at 03:00AM
https://news.google.com/rss/articles/CBMiRmh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy91cy1zdG9ja3MtdS1zdG9ja3MtY2xvc2UtMjAwMDI5MzAyLmh0bWzSAU5odHRwczovL2ZpbmFuY2UueWFob28uY29tL2FtcGh0bWwvbmV3cy91cy1zdG9ja3MtdS1zdG9ja3MtY2xvc2UtMjAwMDI5MzAyLmh0bWw?oc=5
US STOCKS-U.S. stocks close little changed after Fed statement - Yahoo Finance
https://news.google.com/search?q=little&hl=en-US&gl=US&ceid=US:en
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