The U.S. Federal Reserve (Fed) kept its benchmark interest rate unchanged in the 3.75%–4.00% range

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The Fed kept its benchmark interest rate unchanged in the 3.75%–4.00% range. The decision was reached with 10 votes in favor and 2 against—the latter two having favored a 25-basis-point hike. During the press conference, Kevin Warsh—a member of the Board—highlighted the strength of economic activity, pointing to productivity growth and capital investment.

Against this backdrop, U.S. Treasury yields showed mixed movements across the yield curve at yesterday’s close. While the 1-year Treasury note remained stable at 4.45%, the 3-year note edged down from 4.80% to 4.78%; in contrast, the 10-year note rose from 5.00% to 5.02%.

Meanwhile, major U.S. stock indices closed yesterday’s session with gains. The S&P 500 and the Nasdaq each rose 0.3%, while the Dow Jones climbed 0.2%. Consequently, these indices have posted year-to-date gains of 13.1%, 14.2%, and 9.2%, respectively.

Additionally, the Personal Consumption Expenditures (PCE) price index for September was released in the United States, showing an increase of 0.5% month-on-month and 3.6% year-on-year—the latter figure in line with expectations. Meanwhile, the core index—which excludes food and energy—rose 0.2% month-on-month and 3.1% year-on-year. Additionally, the preliminary Gross Domestic Product (GDP) figure for the third quarter showed an expansion of +3.4% (annualized quarterly rate), surpassing the +3.2% that had been projected.

Finally, following yesterday’s market close, Microsoft and Alphabet released their third-quarter results. Microsoft beat analyst expectations for both revenue and earnings per share (EPS), while Alphabet slightly exceeded revenue estimates but fell short of expectations for EPS. Regarding today’s schedule, Mastercard reported before the market opened, beating analyst expectations for both revenue and EPS; meanwhile, Intel and Amazon are set to release their results after the market closes.

Source: PUENTE