Wall Street Steady: Fed Holds Rates; ASX Set for Flat Open Amid Gold Surge

Rowan Ashford

Published: January 28, 2026 4:41 PM ET

Wall Street Steady: Fed Holds Rates; ASX Set for Flat Open Amid Gold Surge

Wall Street’s financial markets reacted calmly following the Federal Reserve’s decision to maintain interest rates, preventing potential inflation from a rate cut. At 7:20 AM, the S&P 500 and Dow Jones Industrial Average reported little change, while the Nasdaq Composite gained approximately 0.4%. Midway through trading, the S&P 500 briefly crossed the 7,000-point threshold for the first time before retracing slightly. It is poised to extend its winning streak to six consecutive sessions.

Market Implications of Federal Reserve’s Decision

The Federal Reserve’s stance is indicative of a US economy expanding at a “solid pace.” However, while unemployment appears to be stabilizing, inflation remains a significant concern, described by the Fed as “somewhat elevated.” The Federal Open Market Committee voted 10 to 2 in favor of keeping interest rates unchanged. Dissenting votes were cast by Governors Christopher Waller and Stephen Miran, who proposed a quarter-percentage-point rate cut.

International Reactions and ASX Outlook

Northern neighbor, the Bank of Canada, also opted to hold rates steady. This cautious economic outlook is expected to influence Australian markets, with ASX 200 futures showing a slight decrease of 0.05% ahead of market opening.

Shifts in Investor Focus

Following the Fed’s announcement, attention will turn to forthcoming earnings reports from major corporations. Key companies like Microsoft, Tesla, and Meta Platforms are expected to release their results after the market closes.

Global Market Trends

Global stock indices, represented by the MSCI, have experienced a slight decline, primarily affected by weaknesses in the European markets. In the commodities sector, gold prices have surged, surpassing $5,300 per ounce. Furthermore, oil prices have reached a four-month high, with the global benchmark Brent Crude nearing $69 per barrel, largely due to rising tensions in the Gulf region coupled with diminishing US inventories.