Stocks Waver Amid Earnings Anticipation and Fed Decision

Market sentiment remained subdued on Wednesday morning as investors awaited key earnings reports from Big Tech companies and the Federal Reserve's interest rate decision.

The technology-heavy Nasdaq Composite (^IXIC) opened down over 0.3%, following a rebound rally on Tuesday. The S&P 500 (^GSPC) declined by approximately 0.2%, while the Dow Jones Industrial Average (^DJI) traded marginally above the flat line.

Fed Policy Decision Looms

Uncertainty surrounding the Fed's policy decision has prompted caution in markets, despite expectations that interest rates will remain unchanged. Investors will scrutinize Fed Chair Jerome Powell's press conference for insights on the Fed's future rate-cutting path and its stance on President Trump's recent tariff measures.

Tech Stocks Recover

Meanwhile, ASML (ASML), a leading manufacturer of AI chipmaking tools, reported better-than-expected earnings and saw its shares surge 5% in pre-market trading. This boost extended the recovery in tech stocks, which had endured a challenging start to the week.

Chinese tech giant Alibaba (BABA) also gained after announcing a new AI model that it claims surpasses DeepSeek's ChatGPT rival.

Earnings in Focus

Attention will shift to the quarterly results of Meta (META) and Microsoft (MSFT) after the market closes, with investors seeking reassurance that their substantial AI investments will drive growth. Tesla (TSLA) will round out the day's major earnings releases.

ASML Q4 Earnings

ASML reported Q4 earnings per share of 6.85 euros ($7.12), exceeding analyst estimates of 6.68 euros. Revenue also topped expectations, reaching 9.2 billion euros. CEO Christophe Fouquet dismissed concerns that DeepSeek's breakthrough would impact demand for AI chips, citing it as an opportunity for increased demand.

Trump Media Expansion

Shares of Trump Media & Technology Group (DJT) rose 15% pre-market following the announcement of its expansion into financial services. The company will launch "Truth.Fi," offering financial services and fintech products.

Apple Downgrade

Oppenheimer has lowered its rating on Apple (AAPL) to Perform from Outperform, citing slowing iPhone sales and a lack of AI innovation. The downgrade comes ahead of the company's fiscal first quarter results release on Thursday.