Big Tech Earnings Spark Mixed After-Hours Reaction as Fed Holds Rates Steady

US equity markets remained largely stagnant on April 29 as investors balanced a steady Federal Reserve policy against a wave of megacap earnings reports. The S&P 500 and Nasdaq Composite saw negligible movement, while the Dow Jones Industrial Average declined 0.57% to 48,861.81. The focus shifted to the after-hours session where Alphabet, Amazon, Meta Platforms, and Microsoft all reported earnings that beat analyst expectations. However, the market's reaction highlighted growing scrutiny of artificial intelligence expenditures, with joint capital expenditures among these firms now exceeding $650 billion. Alphabet shares climbed following strong Google Cloud performance, which reassured investors that AI investments are yielding results. Conversely, Meta Platforms saw a decline as investors expressed concern over aggressive spending levels. Amazon also saw gains, while Microsoft shares dipped despite the earnings beat. In the macro sphere, the Federal Reserve opted to keep interest rates unchanged, citing persistent inflation. In a surprise development, the central bank announced that Chair Jerome Powell will remain on the Board of Governors beyond the expiration of his current term. Other notable corporate activity included PayPal, which gained after announcing a reorganization that establishes Venmo as a standalone business unit. Additionally, Seagate Technology and Bloom Energy both saw share price increases following strong earnings reports.