Stock Market News Today, 1/29/25 – Futures Close Lower after the Fed’s Interest Rate Decision

Last Updated: 4:00 PM EST

Stock indices finished today’s trading session in the red after the Fed’s interest rate decision. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.24%, 0.47%, and 0.31%, respectively.

Earlier today, the Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2.3% in the fourth quarter. This is much lower than its previous estimate of 3.2%.

In addition, the Atlanta Fed’s January Survey of Business Uncertainty indicated that companies are bracing for a prolonged period of higher interest rates. This sentiment is echoed by former Fed member Tom Hoenig, who believes the Fed should not consider another rate cut until price stability is achieved.

Indeed, the Federal Reserve paused its rate-cutting cycle today as it tries to balance inflation concerns with economic growth.

Nevertheless, despite ongoing uncertainty, firms are slightly more optimistic about future sales growth. According to the survey, sales growth expectations have edged higher in recent months. However, it is worth noting that businesses remain more uncertain about future sales growth than they were before the pandemic.

First Published: 3:50 AM EST

U.S. futures traded mixed on Wednesday morning as investors awaited the Federal Reserve’s first interest-rate decision of 2025. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) were up 0.44% and 0.14%, respectively, at 3:32 a.m. EST, January 29, while the Dow Jones Industrial Average (DJIA) futures were down 0.07%.

The stock market witnessed a strong rebound on Tuesday, with the tech-heavy Nasdaq Composite surging 2%. Further, the S&P 500 and the Dow Jones added 0.9% and 0.3%, respectively. The technology sector led the rally, particularly Nvidia (NVDA), which was up 8.9%.

This rally followed a sharp selloff on Monday when tech stocks saw their worst one-day performance since 2020. The market was rattled by the rapid advancements in AI, particularly the success of Chinese startup DeekSeek’s AI models. This sparked concerns about U.S. leadership in AI and the significant investments being made by large companies in this field.

Looking ahead, the market is now focused on the Federal Reserve’s interest rate decision, with investors expecting the central bank to maintain the current target range of 4.25% to 4.50%. Further, Fed Chair Jerome Powell’s press conference will be closely watched for insights into the future monetary policy.

On the corporate front, the earnings reports from the Magnificent Seven companies like Tesla (TSLA), Meta Platforms (META), and Microsoft (MSFT) will take center stage. Other companies reporting their quarterly numbers today include IBM (IBM), General Dynamics (GD), Levi Strauss (LEVI), ServiceNow (NOW), and T-Mobile (TMUS).

Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.516%. Simultaneously, WTI crude oil futures are trending higher, hovering near $73.92 per barrel as of the last check.

Elsewhere, European indices opened higher on Wednesday ahead of the Fed’s interest rate decision due later today. Also, investors assessed better-than-expected fourth-quarter results from semiconductor company ASML Holding (ASML).

Japanese Market Ended Higher on Wednesday

Japanese indices closed higher today as investors awaited the U.S. central bank’s monetary policy decision. Also, traders assessed the Bank of Japan’s December meeting minutes, which revealed the central bank’s cautious approach to monetary policy.

Today, Japan’s Topix and Nikkei indices closed higher by 0.68% and 1.02%, respectively.

Investors should note that the China and Hong Kong stock markets were closed for the Lunar New Year holidays.

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