Stan Choe
Updated ,first published
Wall Street oscillated, as investors juggled spiking crude prices and the US Federal Reserve’s interest rate announcement while a quarter of high-profile earnings dropped after the closing bell.
The S&P 500 closed flat, the Dow Jones lost 280 points, or 0.6 per cent, and the Nasdaq composite edged up. The Australian sharemarket is set to decline, with futures at 6.47am AEST pointing to a loss of 61 points, or 0.7 per cent, at the open. The ASX lost 0.3 per cent on Wednesday. The Australian dollar was lower at US71.07¢.
The Fed left its benchmark interest rate unchanged for the third straight meeting but signalled it could still cut rates in the coming months, moves that attracted the most dissents since October 1992. Three officials dissented in favour of removing the reference to a future cut, while a fourth, Stephen Miran, dissented in favour of an immediate rate cut.
Outgoing Fed chair Powell says he will stay on Fed’s board after his term as chair ends for an “undetermined period of time.” The Senate Banking Committee earlier approved Powell’s successor as chair, Trump appointee Kevin Warsh, on a party-line vote.
The action was more dramatic in the oil market, where the price for a barrel of Brent crude to be delivered in July jumped 5.8 per cent to $US110.41 per barrel. It’s where most of the trading is happening in the Brent market, and it got as high as $US111.50 earlier in the day.
Oil prices have climbed as President Donald Trump appears willing to keep up the US blockade of Iranian ships, which is preventing the country from making money by selling oil. Iran, in turn, is keeping the Strait of Hormuz closed to other oil tankers hoping to carry crude to customers worldwide as long as the blockade continues.
After Wall Street’s closing bell, a number of notable companies released results. Alphabet topped Wall Street estimates for quarterly revenue growth at its cloud computing unit, driven by sustained enterprise spending on artificial-intelligence infrastructure. Shares of the company were up about 4 per cent in extended trading.
Alphabet’s total revenue rose 22 per cent to $US109.9 billion in the first quarter, compared with an estimate of $US107.2 billion, according to LSEG data.
Facebook owner Meta Platforms raised its annual capital expenditure forecast, doubling down on its decision to plow billions into artificial intelligence infrastructure even as it seeks cost savings via planned layoffs. Its shares slumped 5 per cent in after-hours trading.
Microsoft shares dropped 2 per cent in after-hours trade after posting third-quarter revenue of $US82.9 billion.
Amazon shares slid 2.3 per cent in after-hours trade on its results, with total net sales up 17 per cent to $US181.5 billion.
Earlier, the US stock market remained largely resilient as more companies joined the procession reporting stronger profit growth for the start of 2026 than analysts expected.
Visa jumped 8.3 per cent after delivering stronger results than analysts expected, and CEO Ryan McInerney said consumer spending remained resilient in the quarter. Starbucks climbed 8.9 per cent after likewise reporting better results than expected, while saying customers spent more at each visit, particularly at its North American stores.
But those not meeting expectations have gotten punished. GE Healthcare Technologies dropped 13.2 per cent after falling short of analysts’ forecasts. Robinhood Markets tumbled 13.2 per cent after reporting growth in profit that was not as strong as analysts expected.
Booking Holdings swung between losses and gains and closed 0.4 per cent higher after the online travel company said the war with Iran is affecting its results and kept some potential customers from booking rooms during the latest quarter.
The company behind Booking.com, Priceline and other brands is expecting the conflict to continue affecting its business through the end of June. It could affect travel not only in the Middle East but also in major transit corridors, such as between Europe and Asia.
In stock markets abroad, indexes fell in Europe following a stronger finish in Asia. Hong Kong’s Hang Seng jumped 1.7 per cent for one of the world’s strongest moves.
