The tech-heavy Nasdaq Composite Index lost ground, as Oracle’s financial update sent investors away from many artificial intelligence-related stocks while the Dow hit a record high as investors rotated into value stocks after a Federal Reserve policy update that was less hawkish than expected.
The U.S. dollar extended losses against major peers including the euro, Swiss franc, and Japanese yen after the Federal Reserve lowered interest rates in a widely expected move. The greenback lost ground against peer currencies immediately after the Fed’s announcement.
The Federal Reserve cut interest rates on Wednesday in another divided vote, but signaled it will likely pause further reductions in borrowing costs as officials look for clearer signals about the direction of the job market and inflation that “remains somewhat elevated.”
GameStop posted Q3 revenue below estimates, as the video game retailer struggles to gain ground following its pivot to digital downloads and streaming, sending its shares down. The company booked a $9.2 million loss thanks to bitcoin’s price decline over the three month period.
The U.S. dollar rose ahead of an expected rate cut from the Federal Reserve on Wednesday, while the Australian dollar was firmer after its central bank ruled out more easing. Markets are anticipating a rate cut from the Fed, and preparing for several more central bank decisions before the weekend.
The UK’s blue-chip FTSE 100 was little changed, as gains in precious-metal miners and defence stocks offset declines elsewhere, while investors looked ahead to a highly anticipated U.S. interest rate decision today.
