Global Markets Rally Amid Tech Earnings and Economic Uncertainty

Global shares experienced gains as investors assessed earnings from tech giants Microsoft and Meta. The Fed's decision to maintain interest rates saw the dollar remain steady, except against the yen amid Bank of Japan rate expectations. U.S. stock indexes dipped slightly, while Europe's STOXX 600 hit a record high.

Global shares saw an uptick as investors evaluated earnings reports from tech behemoths like Microsoft and Meta amidst a turbulent week for technology stocks. The Federal Reserve's decision to leave interest rates unchanged kept the dollar steady against most other currencies, but the yen strengthened due to expectations surrounding the Bank of Japan's interest rate policy.

Meanwhile, U.S. President Donald Trump's economic policies, including potential new tariffs on Canada, Mexico, and China, continue to loom over the Federal Reserve's policy outlook. While Federal Reserve Chair Jerome Powell was non-committal about the potential economic impact of tariffs and other policy changes, experts noted that the associated risks were significant.

In the tech market, Microsoft outperformed quarterly revenue expectations, while Tesla's margins and Meta's forecasts failed to meet market anticipations, leading to a mixed response. On Wall Street, tech stocks were a considerable drag on the S&P 500, while the STOXX 600 set a new record high in Europe. Market participants are currently focused on upcoming rate decisions by the ECB and the Bank of Japan, with traders eyeing potential rate cuts and hikes.

(With inputs from agencies.)