Morning Bid: Mixed megacaps and Tehran tensions

By Mike Dolan

Jan 29 -

What matters successful U.S. and planetary markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

Global markets are digesting a torrent of caller accusation connected the earnings, currency and governmental fronts – yet they are holding up reasonably well. The S&P 500 eclipsed 7,000 points concisely ​on Wednesday and looks similar it mightiness bash truthful again.

The Federal Reserve gathering yesterday – and the determination to permission rates unchanged – did thing to ‌disturb the existing marketplace view. Chair Jerome Powell sidestepped astir of the edgy questions astir Fed independence. But present each eyes look to the lipid marketplace arsenic U.S. tensions with Iran vigor up.

I’ll get ‌into each that and much below.

But first, cheque retired my latest file connected however a stronger euro could crook from a imagination into a nightmare for Europe.

And perceive to the latest occurrence of the Morning Bid regular podcast. Subscribe to perceive Reuters journalists sermon the biggest quality successful markets and concern 7 days a week.

MIXED MEGACAPS AND TEHRAN TENSIONS

The varying fortunes of U.S. tech giants amid their AI spending splurge became evident connected Wednesday arsenic the megacap net releases got underway.

While Meta’s banal surged arsenic overmuch arsenic 10% overnight connected plans for a ⁠whopping 73% summation successful superior spending this year, Microsoft fell backmost ‌more than 6% connected disappointing results from its unreality computing business.

Tesla was up 2% arsenic it switched absorption from ebbing EV income to AI spending and robotaxis. Apple reports aboriginal connected Thursday.

As expected, the Federal Reserve near rates unchanged connected Wednesday, with Chair Jerome Powell ‍citing a “clearly improving” economical outlook and sounding relaxed astir labour marketplace strains and above-target inflation. He indicated that immoderate renewed easing apt wouldn’t travel until mid-year, lobbing the shot into his successor’s tribunal arsenic helium approaches the extremity of his word arsenic seat successful May.

Powell remained tight-lipped with reporters erstwhile asked astir his aboriginal and the transgression probe launched by the Trump administration.

Long-term Treasury yields proceed ​to nudge higher, however, with attraction turning to rising lipid prices. Crude benchmarks roseate much than 1% connected Thursday connected caller U.S.-Iran subject tensions. President Trump connected Wednesday threatened ‌Iran with a “far worse” onslaught if it does not marque a woody connected atomic weapons, prompting a steadfast effect from Tehran, which said it would retaliate “like ne'er before” to immoderate U.S. action.

Trump is reportedly weighing options for targeted strikes against Iranian leaders and information forces to animate renewed protests – with the objective, according to 2 U.S. sources, of creating conditions for “regime change”. One root noted that Trump has not yet made a last determination connected subject action.