Markets on Fire: GDP, Fed, and Big Tech Earnings Light Up Wall Street

The markets are running hot this week, with back-to-back major events driving sharp moves across all asset classes. After a jam-packed Wednesday, Thursday is no less intense.

Let’s start with yesterday. The spotlight was on central banks and U.S. macro data. Both the Bank of Canada and the Federal Reserve held rates steady, as expected. But the real market movers were the FOMC statement, Jerome Powell’s press conference, and a blockbuster U.S. GDP print—3.0% versus the expected 2.5%.

The result? A powerful surge in the U.S. dollar and a strong bounce in equities. While stocks initially dipped, they reversed quickly and closed sharply higher. It was a stellar session for dollar bulls and equity traders alike.

The earnings front also delivered fireworks. Microsoft and Meta Platforms reported after the bell, both beating expectations. Meta, in particular, crushed EPS forecasts. The reaction? Microsoft is up 9% pre-market, and Meta is up over 12%. That’s serious momentum heading into Thursday’s U.S. session.

Looking ahead to today, we’re not slowing down. The earnings calendar features more heavyweights: Apple, Amazon, and Mastercard all report after market close. Expect volatility.

On the macro side, we’ve already had an interest rate decision from the Bank of Japan—no change, no major moves on the yen. But we’re still waiting for key data: Canadian GDP, U.S. core PCE, Employment Cost Index, and Unemployment Claims. These could shift sentiment again, particularly for the dollar and bond yields.

Indices continue to trend higher. U.S. indices pushed into new all-time highs on Wednesday and look strong heading into today’s open. In contrast, European indices are lagging. DAX futures are slightly lower ahead of the European open, showing divergence between the U.S. and EU markets.

In currencies, after the dollar’s blowout session on Wednesday, Thursday opens with a modest correction. The Antipodeans (AUD, NZD) are bouncing back strongly, showing notable resilience.

On the commodity front, metals are under pressure. Copper dropped hard, likely impacted by renewed trade tensions and tariff threats. Silver and gold also fell sharply yesterday and are struggling to recover. In contrast, oil is one of the week’s winners—breaking to new local highs on Wednesday. Thursday brings a modest pullback, but momentum remains on the bulls’ side.

Source: https://www.axiory.com/analytics/market-news/markets-on-fire-gdp-fed-and-big-tech-earnings-ligh