By midweek, the Federal Reserve left interest rates unchanged, with Chair Jerome Powell signaling patience as policymakers wait for clearer signals from the economy. Powell said the central bank can “afford to wait for more data,” reinforcing a cautious stance as inflation, growth and labor indicators continue to send mixed messages.
Markets moved anyway. Gold rose 3% to $5,560 an ounce, extending record highs, while Brent climbed to $70 as geopolitical risk returned to commodity pricing. The move came as demand for protection assets stayed firm and energy markets repriced tensions after Donald Trump warned Iran to reach a nuclear deal or face potential military action.
U.S. stock futures traded higher, Asian markets closed mostly positive and European shares advanced, as investors weighed big-tech earnings and a patient Fed against renewed geopolitical risk rippling through commodities.
The U.S. dollar, which had been under steady pressure, recovered part of its recent losses after Treasury Secretary Scott Bessent publicly highlighted the benefits of a strong currency, offering rhetorical support to the greenback.
In emerging markets, Brazil added to the day’s cross-border funding narrative. The country’s Treasury said it plans to tap international capital markets more frequently in 2026, diversifying issuance across euros, yuan and dollars as it seeks to broaden its investor base and reduce reliance on any single market.
U.S. equities struggled to find direction following the Fed’s decision, with major indexes closing largely flat. Stock-specific moves dominated after earnings. Microsoft shares slid 4% after the company flagged higher-than-expected capital expenditures linked to its artificial-intelligence push, reviving concerns over margins. Tesla shares, by contrast, rose in after-hours trading despite weaker-than-expected vehicle sales, suggesting investors remain focused on longer-term strategy rather than near-term delivery figures.
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