Investors expected the Fed to hold rates — it was Powell's comments that drew interest

The U.S. Federal Reserve has opted to maintain its key interest rate in the range of 3.5% to 3.75%, a move that was widely anticipated by investors. However, the spotlight shifted to Chair Jerome Powell’s remarks surrounding the legal case involving Fed Governor Lisa Cook, which could determine if President Donald Trump has the authority to dismiss her. Powell emphasized the significance of this case, stating, "That case is perhaps the most important legal case in the Fed's 113-year history. ... it might be hard to explain why I didn't attend." He also advised the next Fed chair to steer clear of political influences, saying, "Don't get pulled into elected politics. Don't do it." On the international front, U.K. Prime Minister Keir Starmer's visit to China marks the first by a British leader in eight years, reflecting efforts to strengthen relations with the second-largest economy. Early indications suggest the trip is yielding results, with commitments for enhanced cooperation between China and Britain reported by state media. Earnings reports dominated the financial landscape, with Meta Platforms, Microsoft, and Tesla all announcing results post-market close. While all three companies surpassed earnings expectations, investor responses varied; shares of Meta and Tesla increased, whereas Microsoft’s stock saw a decline. The S&P 500 index briefly crossed the 7,000 mark for the first time but ultimately settled slightly below that level. In currency news, the U.S. dollar gained strength after Treasury Secretary denied rumors of government intervention in the currency market. Meanwhile, across the Atlantic, Deutsche Bank reported record profits for the last quarter of 2025. Swiss pharmaceutical giant Roche also projected robust growth in its core earnings for 2026. Gold prices soared past $5,500, reaching another all-time high, although some analysts have raised concerns about the state of the precious metals market. With Apple’s earnings report on the horizon, investors remain vigilant in monitoring market movements. The Fed’s decision to keep interest rates steady was not without dissent, as Governors Stephen Miran and Christopher Waller voted in favor of a quarter-point cut. Powell noted that the current economic landscape appears more favorable than it did a year ago, amid discussions of Nvidia's AI-driven growth and ASML’s pivotal role in semiconductor manufacturing. In corporate competition, SK Hynix has overtaken Samsung Electronics in operating profit, a milestone attributed to its leading position in high-bandwidth memory crucial for AI technologies. Despite Samsung reporting record quarterly revenue, its shares fell, highlighting the complexities of the market. Analysts suggest that the Fed’s recent meeting and prevailing market conditions may indicate a prolonged wait for potential rate cuts. The Swiss franc’s rise against the dollar, reaching an 11-year high, has sparked concerns among Swiss policymakers about its impact on the nation’s export-driven economy, as they grapple with subdued price growth.