Finance

The Federal Open Market Committee voted to keep the benchmark federal funds rate steady at a range of 3.50% to 3.75%. The decision marked the central bank's fifth consecutive pause on interest rates as officials continue working to steer inflation toward their 2% objective. However, the decision was not unanimous, as three committee members dissented in favor of a quarter-percentage-point rate hike.

Microsoft shares jumped following financial results that exceeded Wall Street forecasts, supported by strong cloud performance and a stable capital expenditure guidance that eased spending concerns. Conversely, Meta Platforms witnessed a sharp decline in its stock price. The downward move followed an earnings-per-share miss and increased capital projections linked to its ongoing artificial intelligence infrastructure development.

The domestic economy showed signs of cooling as advance estimates revealed gross domestic product grew at an annualized rate of 1.5% for the second quarter. This print came in softer than the 2.1% growth expected by economists and marks a downshift from the previous quarter. Analysts pointed to international trade deficits and geopolitical tensions in the Middle East as contributing factors to the slower pace.