- The Fed hiked 25bp to 3.75%-4.00%, its first increase in three years, and projected one more hike in 2026, signaling the tightening cycle is nearing its end.
- The Nasdaq Composite gained 0.72% for the week, its third win in four weeks, while the Dow Jones Industrial Average fell for a third consecutive week.
- AI and semiconductor shares led the divergence, with Nvidia, Microsoft, Amazon, and Meta Platforms recovering quickly as AI-driven earnings momentum outweighed rate anxiety.
- Rate-sensitive financials declined and market leadership stayed concentrated in mega-cap technology and AI names.
Quotes
“AI-driven earnings momentum outweighed rate anxiety”