Stocks Finish Mixed as Fed Keeps Interest Rates Steady

Economic Indicators - US MBA mortgage applications fell by 8.5% in the week ended January 23, with the purchase mortgage sub-index down 0.4% and the refinancing mortgage sub-index down 15.7% [1] - The average 30-year fixed rate mortgage rose by 8 basis points to 6.24% from 6.16% in the prior week [1] - The FOMC voted 10-2 to keep the fed funds target range unchanged at 3.50%-3.75%, indicating solid economic activity and somewhat elevated inflation [6][7] Stock Market Performance - Stock indexes settled mixed, with the S&P 500 down 0.01% and the Nasdaq 100 up 0.32% [5] - Strength in chipmakers and AI infrastructure stocks was noted, driven by a record Q4 booking of 13.2 billion euros reported by ASML Holding NV, significantly above the consensus of 6.85 billion euros [4] - 81% of the 106 S&P 500 companies that reported earnings beat expectations, with S&P earnings growth expected to climb by 8.6% in Q4 [10][11] Company Earnings and Forecasts - Seagate Technology Holdings Plc closed up more than 19% after positive earnings results, while Texas Instruments and ASML also contributed to bullish market sentiment [15] - F5 Inc. reported Q4 net revenue of $822.5 million, exceeding the consensus of $758.8 million, and raised its full-year revenue forecast [16] - AT&T reported Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion [17] Market Trends and Expectations - The market is focused on new tariff news and the prospects for a continued resolution to fund the government, with initial weekly unemployment claims expected to increase by 5,000 to 205,000 [9] - The dollar index finished higher, recovering from a nearly 4-year low, while gold prices surged more than 3% to a new all-time high [2] - European government bond yields were mixed, with the 10-year German bund yield falling by 1.7 basis points to 2.857% [13]