The US stock market experienced a notable decline on Wednesday, persisting in a state of vulnerability amidst the confusing backdrop of economic and monetary policies, despite some reassuring comments from Federal Reserve Chair Jerome PowellThe messages emanating from the Fed remain a focal point, but the nuances of such communications are often drowned out by broader market sentiment and economic concerns.

On the closing bell, the S&P 500 dropped by 0.47%, settling at 6039.31 points, while the Nasdaq composite index fell 0.51% to reach 19632.32 pointsThe Dow Jones Industrial Average also saw a decrease of 0.31%, ending at 44713.52 pointsThese figures highlight a collective apprehension that has spread across major indices, reflecting investor anxiety and the fluctuating economic landscape.

As anticipated, the Federal Reserve opted to maintain the current policy interest rates, yet a key phrase indicating that inflation was “progressing towards the 2% target” was conspicuously omitted from their statementIn the subsequent press conference, Powell insisted that this removal should not be interpreted as signaling any significant shift in policyKrishna Guha, who leads global central bank strategy research at Evercore, commented that Powell's press briefing felt "decidedly less hawkish" compared to the monetary policy assessment.

This shift in tone, combined with ongoing tariff discussions, contributed to the earlier market rout which later moderated as the trading day progressedPowell reiterated during the presser that there is “no rush to lower interest rates” and stressed that forthcoming actions from the US government could influence market reactionsCoincidentally, the day marked the hearing for Howard Lutnick as Secretary of Commerce, igniting unfavorable associations regarding US policy in the minds of investors.

After hours trading continued to reflect the day's tumultMicrosoft saw a dip in stock prices attributed to slowing growth in its Azure cloud services, while Tesla demonstrated volatility, initially declining before witnessing a rebound

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Despite earnings falling short of expectations, excitement hovered around the potential of new models set to hit production in the first half of 2025. Meanwhile, IBM experienced a significant surge, buoyed by the demand for AI solutions, though Meta’s performance guidance was tepid, despite relatively robust revenue figures.

Examining the performance of popular stocks, the tech giants mostly faced declinesApple edged up by 0.46%, but Microsoft fell 1.09%, following a drop of 0.45% for Amazon, and Nvidia took a significant hit of 4.10%. Alphabet’s Class A shares showed a slight uptick of 0.06%, while Tesla ended down by 2.26%. Meta, however, gained 0.32%, with Advanced Micro Devices climbing 2.79%, and Intel saw a modest decline of 0.25%.

In the realm of post-market earnings announcements, Tesla’s fourth-quarter report revealed an adjusted earnings per share of $0.73, which fell short of the anticipated $0.76. The automotive revenue saw an 8% year-over-year decline, totaling $19.8 billion, contributing to a lackluster overall revenue growth of just 2%. Net income plummeted by 71% to $2.32 billion, though Tesla’s energy division experienced remarkable growth of 113%, reaching $3.06 billion.

Microsoft’s fiscal year 2025 second-quarter results showed earnings per share at $3.23, surpassing the expected $3.11, along with revenue slightly exceeding expectations at $69.63 billionHowever, the underwhelming growth in Azure cloud services, which saw a 19% rise instead of the anticipated 25%, contributed to a notable 5% drop in after-hours trading for the stock.

Meta Platforms released its fourth-quarter revenue of $48.385 billion, outperforming the market's forecast of $46.99 billion and significantly higher than $40.111 billion in the same period last yearProjections for the first quarter of 2025 forecast revenues to land between $39.5 billion and $41.8 billion, with total expenses anticipated between $114 billion and $119 billion for the entire year.

Meanwhile, IBM disclosed fourth-quarter figures that exceeded Wall Street’s expectations, delivering an adjusted earnings per share of $3.92 compared to the anticipated $3.75. Revenue climbed to $17.55 billion, slightly higher than the expected $17.54 billion

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Although net income saw a year-on-year decline, the software sector thrived with a 10% growth primarily driven by the increasing uptake of AI technologies.

In breaking news, Elon Musk confirmed that Starlink could connect directly with iPhonesRecent reports indicate that Apple has included support for the Starlink network in the latest iOS 18.3, beginning testing for satellite communication servicesAmerican users received messages from T-Mobile informing them about the availability of Starlink services, including the capability to send texts via satelliteThis development has allowed users to send and receive images, music, and podcasts, with video transmission set to followAs a direct consequence, shares of Global Star, a former partner of Apple, plummeted by 17.8%.

Amidst these fluctuations, Goldman Sachs downgraded Moderna's stock rating from 'buy' to 'neutral', drastically slashing its target price from $99 to $51. This decision stemmed from Moderna's recent downward revision of product revenue forecasts, particularly adjusting the expected revenue range for its respiratory vaccine business for 2025 down to $1.5 billion to $2.5 billionGoldman anticipates revenues to settle at the lower end of this spectrum and raised concerns regarding Moderna’s revenue visibility, adjusting its cash breakeven forecast to 2029, alongside expectations of potential equity financing in 2028 and 2029. As a result, Moderna's stock saw a decrease of 9.39% on Wednesday.

In other noteworthy developments, satellite imagery and data analytics company Planet secured a contract worth $230 million with a client in the Asia-Pacific region for its next-generation Pelican satelliteThis contract, marking Planet’s largest deal to date, signifies a critical advancement into the satellite services marketIt encompasses the construction of satellites and five years of operation, providing the client with exclusive access within their region, while Planet will retain data licensing for other areas

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