Finance

Alphabet shares rallied approximately 10% following a significant earnings beat and positive commentary regarding its cloud and AI operations. In contrast, Meta Platforms and Microsoft saw their stock prices slide by roughly 9% and 4%, respectively, as investors expressed concern over the high capital expenditures required for continued artificial intelligence infrastructure development.

The Federal Open Market Committee maintained its benchmark interest rate at a range of 3.5% to 3.75%, but the decision included three dissents from officials favoring a more restrictive stance. Market participants interpreted the central bank's messaging as hawkish, leading to a reduction in expectations for rate cuts in the near term as inflation remains a primary focus.

WTI and Brent crude prices spiked to four-year highs during the session following reports of potential U.S. military escalations in Iran and the ongoing naval blockade of the Strait of Hormuz. Although prices initially surged to wartime peaks, they partially regressed later in the day as investors balanced supply shock fears with broader economic data.