Nasdaq Remans Flat As Market Waits for Fed Rate Decision
Stocks are holding mostly still today as investors hold out for a decision from the Federal Reserve on interest rates.
Quick overview
- The Nasdaq Composite has seen minimal movement this week as investors await the Federal Reserve's interest rate decision.
- The Dow has gained 0.43% today, supported by strong performances from American Express, Nike, and Johnson & Johnson.
- Tech stocks are experiencing stagnation, with major players like Nvidia and Tesla showing slight declines amid concerns over AI profitability.
- Investor sentiment towards tech stocks may shift dramatically depending on the Fed's decision regarding a potential rate cut.
The Nasdaq Composite has moved very little this week as investors are waiting for the Federal Reserve to make their policy decision later today.
Across the U.S. stock markets, little movement is happening since there is an interest rate decision to come later today from the Fed. The Nasdaq is down 0.20%, and the S&P 500 has gained just 0.06% over the last 24 hours.
The Dow has moved a bit more than the others, with gains of 0.43% for the day. That index’s movement is being helped along by strong performances from American Express, Nike, and Johnson & Johnson today. Meanwhile, tech stocks are far more restrained.
Tech Stocks Stagnate In a Waiting Game
With only hours to go before the Fed makes a decision on a new rate cut, technology stocks are stuck in a kind of limbo. These are stocks that have had a difficult few weeks as companies have fought back against a narrative that AI stocks are in a bubble that is preparing to burst.
Even with strong quarterly earnings and excellent future outlooks, many AI-related stocks cannot fight off the stigma that artificial intelligence is a black hole for profits. A new rate cut from the Fed would likely give the stock market a boost, but it will not change investors sentiment about AI stocks.
Nvidia (NVDA) is down 1.19% for the day, and Tesla (TSLA) has fallen 0.08%. These are companies that have invested millions in research and development of AI programs and components, so their futures really do rest on artificial intelligence proving profitable for years to come.
Alphabet (GOOGL) stock is also holding steady with a decrease of just 0.10%, and it is part of the wider holding pattern trend for technology stocks this week. A few stocks in the niche have taken a hit, though, heading into the rate decision. Among those is Microsoft (MSFT), with a 2.02% drop. The particular stock is not doing poorly overall, though, as it has grown tremendously over the course of 2025.
What investors need to be aware of right now is that tech stocks are mostly struggling, with the high performers coming down harder than the mid-performers. Overall, tech stocks are declining, but that could swiftly swing in the other direction once the Fed decides to issue a rate cut. If they do not, however, then we may see tech stocks plummet further.
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