Stocks rebound from Fed day sell-off, led by Microsoft and chipmakers: Live updates

“This is ultimately a tale of two AI investment strategies. One company is increasing profits while spending heavily, while the other is allowing those costs to eat into its bottom line,” said Stephen Evans, chief investment officer at Pave Finance.

Investors monitored the bond market, with the 30-year yield hovering near 2007 highs after the Fed’s decision to keep rates unchanged. It jumped 6 basis points after regular trading Wednesday to above 5.2%. The rest of the yield curve was little changed.

Wall Street is coming off a dismal session. On Wednesday, the Dow plunged more than 1,100 points, marking the blue chip index’s worst decline since April 2025. The Nasdaq 100 fell into correction territory. The Nasdaq Composite was not too far off those levels itself.

“The Fed remains patient [and in] a wait-and-see mode, and will continue to monitor how the economy evolves in the upcoming months,” said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.

“This leaves the September meeting ‘live’ as an opportunity for the Fed to act if supported by the incoming data to appease rising inflation pressures.”

The latest economic data released Thursday showed U.S. growth slowing to a 1.5% in the second quarter, according to Bureau of Labor Statistics. That missed the Dow Jones consensus estimate of 1.8%.

Inflation remained above the Fed’s target. The latest personal consumption expenditures price index falling a seasonally adjusted 0.1% for the month, and 3.7% for the year, in line with the Dow Jones consensus estimate. But core PCE, which excludes food and energy, showed a monthly increase of 0.1% and an annual level of 3.3%. Economists were anticipating respective forecasts for 0.2% and 3.3%.

One of the busiest weeks of corporate earnings continues Thursday, with Amazon, Apple and Coinbase set to report after the close.