AI-powered contentSome parts of this article are powered by AI.
Share this article
The Fed raised rates for the first time since 2023 and the 10-year Treasury yield cleared 5%. Here is what to watch tonight.
Wall Street closed lower on Wednesday. The Dow Jones dropped 631 points, or 1.21%, to 51,462, the S&P 500 slipped 0.44%, while the Nasdaq finished nearly flat as large-cap tech held its ground.
The trigger was clear. The Fed raised its benchmark rate by 25 bps to a range of 3.75% to 4.00%, its first hike since 2023, with a hawkish tone and a signal of at least one more increase this year.
The 10-year US Treasury yield topped 5% for the first time since 2007. That level is tonight's key signal and it resets the math on almost every rate-sensitive trade.
Over 25% of revenue now from Taiwan-based customers; memory names in focus
Tonight's Catalysts
The Fed hikes and the 10Y clears 5%
The FOMC lifted rates to 3.75% to 4.00% in a unanimous vote, and officials' projections leave room for one more hike this year. The Dow shed 631 points and gold slipped on the decision. If you hold rate-sensitive names like banks and small caps, tonight sets the tone.
FedEx reports after the close
FedEx (FDX) reports after the market closes. As a global logistics bellwether, its numbers are often read as a gauge of real-economy health. Watch the full-year guidance and the cost-cut progress, especially with funding costs rising on higher rates.
Power and nuclear names rally on AI electricity demand
Utilities and nuclear names were a bright spot. GE Vernova (GEV) crushed it, Forgent Power jumped 11% on a swing to profit, and the Vistra (VST) versus Constellation debate over the better AI-power bet is live again. Electricity demand for AI data centers remains the engine here.
Pre-Market Pulse 📊
US futures direction still needs confirming into tonight's open. Beyond the watchlist, Snap's after-hours signal was mixed following the Specs launch, while AI-memory names such as Micron stayed in the conversation. Homebuilder reads like Lennar are worth a look as an early reaction to the hike.
Macro Note 📝
The 10Y above 5% is the anchor tonight. Gold eased to around $4,461 an ounce, WTI crude held elevated near $105 a barrel, and the dollar firmed against Asian currencies. Central banks are already moving: Hong Kong followed with its first hike in over three years, while the BOJ and Taiwan face the same pressure. The read-through for Asian FX is worth watching.
Conclusion
Tonight is less about a single stock and more about the price of money changing. The Fed's hike and a 10Y above 5% pressure rate-sensitive valuations, but they also open stock-specific stories like FedEx earnings and the AI-power rally.
The healthy move is to separate the macro noise from the per-stock opportunities. Build your watchlist, mark the levels you care about, and let tonight's data guide the next step.
Track all of this in one place. Check Watchlist on Gotrade and set up your strategy for tonight.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms registered with Kominfo (Indonesia's Ministry of Communication and Informatics). His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
