Fed Sounds Confident About Economy, Flight to Metals Accelerates; Microsoft, IBM, and Meta In Focus

Barry Adams
29 Jan, 2026
New York City

Stocks on Wall Street advanced on Thursday as investors reviewed the latest earnings reports and the Fed's rate decisions. 

The S&P 500 index inched up 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2% amid elevated geopolitical risks and trade friction. 

In Wednesday's session, the Nasdaq Composite advanced 0.2%, driven by another run-up in Micron Technology, Nvidia, and other leading semiconductor designers.  

The widely followed benchmark index crossed 7,000 for the first time in intraday trading on Wednesday, after the Federal Reserve held steady its key lending rate range between 3.5% and 3.75%, as expected. 

The central bank signaled that the U.S. economy is holding up and rates "are sufficiently restrictive" in post-decision comments while talking to reporters. 

The U.S. Federal Reserve lowered rates three times in 2025, and traders are anticipating at least two additional rate cuts totaling 50 basis points in 2026. 

Oil explorers advanced on reports that the U.S. is preparing to conduct additional air strikes in Iran, which could disrupt global crude oil flows. 

The U.S. president said that the U.S. naval forces in the region are ready to "act with speed and violence, if necessary," adding to fears that Iran's retaliation could disrupt oil flows through the Strait of Hormuz, responsible for roughly one-third of the global supply.

Gold jumped 2% to $5,525.19 an ounce, and silver advanced 1.9% to $118.79 amid a surge in buying after the U.S. Federal Reserve held the benchmark interest rate range steady.

 

U.S. Movers

Microsoft Corp. dropped 7% to $448.67 after the software company reported higher-than-expected earnings in its latest quarter, but capital expenditures were ahead of expectations. 

Meta Platforms soared 7.4% to $724.97, and the parent company of Facebook reported better-than-expected revenues and earnings in the fourth quarter. 

Revenue increased to $59.9 billion, and diluted earnings per share rose to $8.88 per share, and the company forecasted first-quarter sales to range between $53.5 billion and $56.5 billion. 

Southwest Airlines jumped 5.6% to $43.16 after the company estimated a higher-than-estimated adjusted profit of $4.0 per share in 2026. 

Tesla Inc. rose 3% to $443.20 despite the electric vehicle maker reporting mixed results in the fourth quarter. 

Tesla reported its first annual sales decline, driven by a fall in vehicle sales in three of the last four quarters. 

IBM rose 9.1% to $320.50, and the legacy tech major's quarterly results surpassed market expectations. 

The company reported adjusted earnings of $4.32 per share on revenue of $19.3 billion.