US markets were mixed on Wednesday after the S&P 500 briefly crossed the 7,000 mark for the first time in intraday trading before easing into the close. The benchmark index slipped 0.01 per cent to finish at 6,978.03, after earlier rising as high as 7,002.28. The Dow Jones Industrial Average edged up 12 points to 49,015.60, while the Nasdaq Composite outperformed, adding 0.17 per cent to end at 23,857.45.
Federal Reserve stays on hold, outlook shifts
The Federal Reserve left interest rates unchanged at a target range of 3.5 per cent to 3.75 per cent, as widely expected. However, markets reacted to a more upbeat assessment of economic conditions, with policymakers noting that growth has been expanding at a solid pace and that the labour market is showing signs of stabilisation.
Treasury yields moved higher following the decision, reflecting reduced expectations of near-term rate cuts. The Fed signalled comfort with holding policy steady while monitoring inflation pressures and employment trends, suggesting rates may remain unchanged for an extended period.
Chip stocks drive gains, rally narrows
Earlier gains in the broader market were driven by strength in semiconductor stocks after upbeat earnings and guidance from key players. Seagate Technology surged 19 per cent after reporting better-than-expected quarterly results, underpinned by strong demand for data storage linked to artificial intelligence.
ASML also reported record orders and issued positive guidance for 2026, highlighting continued strength from AI-related investment, though its shares reversed earlier gains to close down 2 per cent. Despite the strong performance in chips, the rally struggled to broaden, and the S&P 500 was eventually pulled lower into the close.
Big Tech earnings and corporate results in focus
Attention is now turning to a heavy slate of technology earnings. Microsoft, Meta Platforms and Tesla are due to report after the US market close on Wednesday, with Apple set to follow on Thursday. Outside the tech sector, Starbucks shares fell 0.6 per cent after the company reported quarterly earnings that missed expectations, despite stronger-than-forecast revenue.
Australian market outlook
Australian shares are set to open flat, with ASX 200 futures pointing to a 4-point fall to 8,893. Companies reporting results include Whitehaven Coal, Iluka Resources, Liontown and Mineral Resources, while Mayne Pharma is holding its annual general meeting.
On the data front, New Zealand will release its December trade balance and January business confidence figures. Offshore, Sweden’s central bank is expected to hold rates steady, while early Friday AEDT will bring a batch of US economic data, including trade figures, factory and durable goods orders, wholesale inventories and weekly jobless claims.
