Mega Thursday: Fed Fallout, Big Tech Earnings, and Trade Optimism Fuel Markets

Hello traders, and welcome on Thursday, following one of the busiest trading days of the quarter. Wednesday was packed with crucial macroeconomic events, central bank decisions, and major corporate earnings — a day that truly tested traders’ ability to keep up with the headlines. Let’s take a closer look at what happened and what’s next.

The day began with higher-than-expected inflation from Australia, which strongly supported the Australian dollar, reinforcing expectations that the RBA might stay cautious with future rate cuts. Then came the Bank of Canada’s decision, where policymakers delivered a 25-basis-point cut, fully in line with expectations. But the real market mover was the Federal Reserve’s FOMC meeting, where the Fed also cut rates by 25 basis points, bringing the benchmark rate down to 4.00%. However, Jerome Powell’s comments introduced a hawkish twist, as he hinted that further cuts are not guaranteed and will depend on upcoming data. 

But monetary policy wasn’t the only major theme yesterday — geopolitics returned to the spotlight. Late Wednesday, Donald Trump commented on his meeting with Xi Jinping, calling it “amazing” and claiming that “a lot of decisions were made” regarding trade cooperation, including China’s immediate resumption of soybean purchases from the U.S. These optimistic remarks helped risk appetite surge, giving a further boost to indices and risk-sensitive currencies such as the Australian and New Zealand dollars.

Overnight, attention shifted to Japan, where the Bank of Japan left rates unchanged, as expected. Governor Kazuo Ueda’s comments were dovish, emphasizing that “Japan’s economy is recovering moderately, albeit with some weakness,” and reaffirming the BOJ’s commitment to easy monetary policy. This tone weakened the yen further, pushing pairs like USDJPY and CHFJPY higher.

On the earnings front, the session was explosive. We had reports from Microsoft, Google, Meta Platforms, and Caterpillar — all showing strong revenue, but Meta’s earnings per share (EPS) disappointed sharply. Market reactions were mixed: Caterpillar jumped 11% after its strong results, Google is up 6% pre-market, Microsoft is down 3.5%, and Meta is sliding 6.7% pre-market after a weak EPS and cautious forward guidance. And the earnings parade isn’t over — today brings more giants, including Apple, Amazon, Eli Lilly, and Mastercard.

As for market movements, indices continue to push higher, with positive sentiment dominating across most sectors. On the currency market, we see yen weakness, strength in the euro, and ongoing gains in commodity currencies such as the Australian and New Zealand dollars. In commodities, oil remains stable after its recent rebound, while gold and silver are attempting to recover — though momentum there remains fragile.

To sum up, Thursday continues the storm of activity — from central bank fallout to earnings fireworks and trade optimism. It’s a day where both fundamentals and sentiment are in play, and traders will need to stay alert as Apple and Amazon prepare to report after the bell.

Source: https://www.axiory.com/analytics/market-news/mega-thursday-fed-fallout-big-tech-earnings-and-tr