Wall Street dips as Fed holds rates, Meta's stock falls
US stocks dipped on Wednesday after the Federal Reserve signaled it's not rushing to cut interest rates further.
Adding to the market's nerves, Meta's stock tumbled 11% as the company took on more debt to fund its AI ambitions.
Why is the Fed's careful approach important?
The Fed's careful approach means borrowing could stay pricey for a while, potentially impacting consumer borrowing.
Meanwhile, Meta betting big (and borrowing big) on AI has raised concerns about whether those risks will pay off—especially since tech stocks are already seen as expensive.
How does this all tie back to the US markets?
Investors are feeling uneasy: high inflation and job market worries have made the Fed extra cautious.
At the same time, Meta's bold move into AI is raising eyebrows about profitability in tech.
All of this has led to a dip in confidence and a pullback in US markets.