The Fed holds steady, GDP beats, and all eyes are on Meta and Microsoft

Stocks trade flat as investors await the Fed’s latest decision, with rates expected to remain unchanged for a fifth straight meeting. Second quarter GDP beats forecasts at 3%, while ADP payroll data shows hiring remains solid but is slowing. Market focus is on Meta (META) and Microsoft (MSFT) earnings after the bell, with AI spending and guidance under the microscope. Investors look for clues on whether Big Tech’s rally can continue and watch for signs of market risk as valuations stretch. Humana (HUM), Seagate (STX), and Palo Alto Networks (PANW) are trending.

Takeaways:

• Fed expected to hold rates steady, signals caution on cuts

• US GDP grows 3% in Q2; ADP payrolls steady but cooling

• Meta and Microsoft earnings in focus as AI trade leads the market

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