Fed holds rates as Big Tech splits the market on earnings and AI bets

U.S. stocks closed lower after the Fed left rates unchanged, with the Dow down about 1,153 points (2.19%), the S&P 500 -1.52%, and the Nasdaq -1.74% as investors weighed contrasting AI strategies: Microsoft jumped on strong enterprise demand and capex plans, while Meta Platforms fell after disappointing earnings. Treasury yields surged, with the 30-year above 5.2% for the first time since 2007, signaling a higher-for-longer rate environment ahead of key data (jobless claims, PCE inflation) and further earnings this week from Bristol-Myers Squibb, Amazon, Apple and Coinbase.