US markets end mixed amid Fed policy outcome and megacap earnings; Gold and silver prices continue the rally

The US markets ended mixed on Wednesday after the Federal Reserve kept the policy rates unchanged as expected. The Dow Jones and S&P500 closed largely unchanged, and NASDAQ closed in green ahead of megacap earnings after market hours. The Federal Reserve voted 10-2 for holding the rates steady after three consecutive rate cuts in the previous year.

Policymakers noted that economic activity has been expanding, and strong labor market conditions have prompted them to keep the rates steady. However, it noted that the inflation risks persist and will continue to monitor the incoming data.

Following the Federal Reserve’s policy outcome and its outlook on inflation and growth, the US equity markets closed mixed. However, the commodity markets are unfazed by the US economic growth and improving inflation outlook. The Gold price officially touched the level of $5,500 per ounce mark, jumping 4.5% on Wednesday. On Thursday morning, the prices are up another 2.3% and are trading at $5,545 per ounce.

At the individual stock level, ASML's strong order book boosted the investor sentiment for all the AI-related stocks, which led to heavy gains in Micron Technologies(+5%) and Intel (+12%). In addition, a strong outlook by Texas Instruments in the current earnings report boosted the overall sentiment for chip stocks in the US. ASML reported double the expected orders for the current fiscal year, boosting the rally in chip stocks.

On the other hand, crude oil prices firmed up after the US announced sending an Armada towards Iran and warned of severe consequences if Iran does not come to the table to sign a suitable deal. Following the renewed tension in the Middle East, the WTI crude oil prices jumped over 2% to trade above $63 per barrel.