Tech Earnings Miss Spark Concerns
Major tech firms like Microsoft, Tesla, and Meta Platforms reported mixed results, leading to market volatility. Microsoft’s Azure growth slowed, while Meta forecasted weaker sales. Tesla’s results disappointed, but it remains on track to launch affordable EV models by mid-2025.
Fed Maintains Rate Pause
The Federal Reserve paused its rate-cutting cycle, keeping the benchmark rate unchanged at 4.25%-4.50%. Fed Chair Jerome Powell emphasized data-driven decisions, citing persistent inflation and uncertainty tied to new trade policies under President Trump.
Tariffs Loom Over Economic Outlook
President Trump’s plans for 25% tariffs on Canadian and Mexican imports further complicated the economic landscape. Analysts fear these measures could revive inflation and undermine the case for future rate cuts.
Investors Seek Diversification Amid High Valuations
With the S&P 500 trading at elevated valuation levels, concerns about tech stock overreliance have grown. Market strategists urge broader diversification to mitigate risks from concentrated investments in the tech sector.
