FOMC Holds Rates Steady and Announces Meeting Reforms
The US Federal Reserve announced its rate decision in the early hours of the 29th, voting 10-2 to hold rates steady. The meeting noted continued expansion in US economic activity with resilient domestic consumer spending, but lingering concerns over elevated inflation, with the news continuing to be digested by the market and long-term US Treasury yields fluctuating near 5%. Chair 華許 announced reforms to the Fed's framework, with the current FOMC holding 8 meetings per year, starting in 2028, 2 of which will shift to dedicated monetary policy discussions, leaving only 6 with rate votes.
PCE In Line With Expectations, Third-Quarter GDP Beats Expectations
The US Commerce Department reported September personal consumption expenditures price index up 3.6% year-on-year, in line with the market expectation of 3.7%; excluding volatile food and energy components, core PCE rose 3.1% year-on-year, also in line with market expectations. US third-quarter gross domestic product released in the same period grew at a 3.4% annualized quarterly rate, above the market expectation of 3.1%, showing continued support from consumption and the broader economy. With elevated inflation and stronger-than-expected growth, the market continued to assess the Fed's future rate path, pressuring stocks at the open.
Alphabet Misses Earnings, Microsoft Shines
On the stock front, Alphabet reported third-quarter earnings after the close on the 28th, with revenue of $127.58 billion, below the market expectation of $128.22 billion; adjusted earnings per share were $2.67, also below the expected $3.02, with AI capital expenditure reaching $51.36 billion. Microsoft reported 2027 first-quarter earnings, with revenue of $92.28 billion, above the market expectation of $90.63 billion; earnings per share of $4.89 also beat expectations, with another highlight being 30% year-on-year growth in cloud revenue. The divergence between the two tech giants' earnings became a market focus.
As of press time after the US market open, all four major indexes declined, with the Dow Jones Industrial Average down 224.18 points or 0.43%, the S&P 500 down 32.89 points or 0.42%, the Nasdaq Composite down 343.16 points or 1.29%, and the Philadelphia Semiconductor Index down 189.58 points or 1.62%. Among individual stocks, Microsoft rose $5.03 or 0.95%, Alphabet fell $41.62 or 12.93%, 聯電 ADR fell $0.91 or 4.86%, and 台積電 ADR fell $6.41 or 1.46%. In addition, TAIFEX night session fell 254.00 points, last reported around 21:38 at 46,315 points, with 數字 updated before press time, please refer to actual quotes for stock prices.