At midday on Wednesday, US stock markets were trading with mixed results. Investors are awaiting the Federal Reserve's interest rate decision and earnings reports from several major technology companies. There is a widespread expectation that the Fed will keep the benchmark federal funds rate unchanged on Wednesday, with two potential rate cuts projected for the year.

The Dow Jones Industrial Average gained 20.42 points, or 0.04%, to 49,023.83; the Nasdaq Composite fell 13.17 points, or 0.06%, to 23,803.93; and the S&P 500 index dropped 7.09 points, or 0.10%, to 6,971.51. Shares of semiconductor equipment giant ASML Holding NV surged after the company reported record orders and issued strong 2026 performance guidance, fueled by the artificial intelligence boom. Data storage infrastructure firm Seagate Technology PLC saw its stock price soar after announcing second-quarter profit and revenue that exceeded expectations. The company's CEO, Dave Mosley, highlighted robust demand for AI data storage. Several major technology giants are set to report their earnings. Microsoft, Meta Platforms, and Tesla are scheduled to release their quarterly financial results after the market closes on Wednesday, with Apple following on Thursday. In the previous trading session, the S&P 500 closed up 0.4% at a fresh record high, while the Nasdaq Composite index advanced 0.9%. The Dow Jones Industrial Average fell by over 400 points, dragged down primarily by a nearly 20% plunge in UnitedHealth Group's stock. The Federal Reserve's monetary policy meeting is under intense scrutiny, with markets broadly anticipating the central bank will hold rates steady. The Fed is set to announce its decision on adjusting the benchmark interest rate on Wednesday, a time when the US President is advocating for rate cuts. Despite the Fed implementing three 25-basis-point cuts since last September, the President believes the central bank started cutting rates too late and is currently acting too cautiously. However, the general market view is that the likelihood of a Fed rate adjustment in the coming months is low. According to the CME FedWatch tool, which tracks market expectations via futures pricing, the probability of the Fed's benchmark rate remaining unchanged for most of April was approximately 72% as of Tuesday afternoon. The Fed's rate-setting committee is expected to maintain the benchmark federal funds rate within the 3.50% to 3.75% range on Wednesday, a decision that influences mortgage rates, credit card costs, and loan expenses. The Fed's latest dot plot, released in December, which summarizes policymakers' interest rate projections, indicated a more cautious path for rate cuts compared to prior forecasts. The median projection suggested the federal funds rate would be in the low-to-mid 3% range by the end of 2026. This cautious stance reflects ongoing concerns about persistent inflation. In his December press conference, Fed Chair Powell stated that "the risks to inflation are tilted to the upside." The President's tariff policies represent another factor for consideration. According to the recently published Beige Book report on US economic conditions, businesses reported that existing import tariffs are increasing costs, while uncertainty over potential new tariffs is complicating planning and investment decisions. The Federal Reserve operates under a dual mandate: to control inflation while supporting a healthy job market. It primarily achieves this by adjusting the federal funds rate, which influences borrowing costs. Higher interest rates tend to curb investment and borrowing, thereby helping to reduce inflation. Christian Hantel, a portfolio manager at Vontobel Asset Management, stated, "The current US economic outlook remains optimistic, with continued growth and a labor market that, while showing some slight softness, has stabilized. Inflation remains above the Fed's target, providing little justification for immediate rate cuts." He added, "Investors should focus on the March and June FOMC meetings as potential windows for policy adjustments, though action could be delayed until the second half of 2026 if economic conditions warrant. All eyes will be on Chair Powell for any signals of an openness to further easing, but the central bank's cautious, meeting-by-meeting approach appears set to continue for now."