CNBC Daily Open: Fed expectedly keeps rates steady — the intrigue was elsewhere

• Two Fed governors (Miran and Waller) dissented and voted for a quarter-point rate cut, while Chair Powell warned his successor to avoid getting 'pulled into elected politics'
• All three tech giants (Meta, Microsoft, Tesla) exceeded earnings and revenue estimates for Q4 2025, though only Meta and Tesla saw stock gains in extended trading
• Oil prices jumped on geopolitical tensions after Trump's Iran statement, while gold hit a record high above $5,500 in Asian trading

Market Summary

Federal Reserve Decision

The Federal Reserve held interest rates steady at 3.5%-3.75%, as widely expected. Fed Chair Jerome Powell noted improved economic and labor market conditions since the last meeting. In an unusual split, Governors Stephen Miran and Christopher Waller voted for a 25-basis-point cut. Powell addressed political pressures, including a legal case involving Governor Lisa Cook accused of mortgage fraud, emphasizing the Fed should avoid "elected politics."

Big Tech Earnings

Meta Platforms, Microsoft, and Tesla all beat Q4 2025 earnings and revenue expectations after Wednesday's close. However, only Meta and Tesla saw positive extended trading movements. Apple is next to report, maintaining investor attention on the tech sector.

Geopolitical Tensions

Oil prices surged after President Trump warned that a "massive Armada is heading to Iran," raising geopolitical risk premiums. Both global benchmark crude and U.S. oil prices rose following these comments related to earlier Iranian unrest.

Market Performance

The S&P 500 briefly touched 7,000 for the first time but closed flat below that threshold. The dollar strengthened after Treasury Secretary intervention in currency markets. Asian chip manufacturers SK Hynix and Samsung Electronics reported strong results, crediting memory chip shortages. Gold prices hit record highs above $5,500.

Market Outlook

Analysts suggest U.S. monetary policy may not loosen in the near future despite the split Fed vote. The combination of strong corporate earnings, geopolitical uncertainty, and sustained higher rates creates a complex environment for investors navigating both opportunities and risks across equities, commodities, and currencies.