Key facts
- Fed kept rates unchanged, with two dissenters.
- Fed Chair Warsh signaled more rate hikes and fewer meetings.
- Bank of Canada hiked rates for the first time in three years.
- Alphabet shares fell 10% on earnings disappointment and cash burn concerns.
- Microsoft shares rose on strong cloud results.
- European natural gas futures exceeded 100 euros.
The Federal Reserve held interest rates steady on Wednesday, though two policymakers dissented and Fed Chair Kevin Warsh signaled that further rate increases are likely. Markets interpreted the Fed's stance as dovish, reducing expectations for future tightening, while the Bank of Canada raised its rates for the first time in three years. Meanwhile, Alphabet's stock dropped 10% due to disappointing earnings and concerns about its cash burn, contrasting with Microsoft's gains driven by its cloud business. European natural gas futures surged past 100 euros, adding to energy market jitters ahead of the European Central Bank's expected rate decision.