US equities closed mostly lower and near their worst levels after Fed Chair Powell's post-FOMC remarks. The Fed raised rates by 25 basis points to 5-5.25%, in line with the March expectations. The FOMC statement scrapped previous guidance that the Fed expects additional policy firming needed to attain a sufficiently restrictive stance. Meanwhile, ADP's April private payrolls report showed 296K in job gains, well ahead of consensus, and the highest level since July 2022. USD Index fell notably against the yen, US treasuries edged lower, and European markets climbed after their biggest fall in a month.  Dow Jones down 270 points (-0.8%) closing near session lows. Dow at best up 127. S&P 500 down 0.70%. NASDAQ down 0.46%. VIX Volatility Index up 3.1%. European markets recovered some of yesterday’s losses, FTSE +0.20%, Germany +0.56%, France +0.28%. SPI Futures are down 35 points (-0.49%).

The Fed raised interest rates by 25bps to a range of 5%-5.25%, as expected, in its May meeting. This marks the 10th increase and brings borrowing costs to their highest level since September 2007. However, the Fed has taken out language from its policy statement saying it anticipates further rate increases would be needed and noted it would consider factors such as overall tightening cycles, policy lags, and other economic and financial developments in determining whether more policy firming is necessary. The Fed also expressed concerns about tighter credit conditions for households and businesses, which could weigh on economic activity, hiring, and inflation. Fed Chair, Jerome Powell, acknowledged that policy is tight, suggesting the Fed may have done enough with rates.

• ASX to fall; US stocks finish at session lows.
• Equities choppy while Treasury yields, dollar retreat in choppy trading after Fed hikes rates.
•  Fed raises rates, opens door to pause in tightening cycle. 
• US yields tumble as Fed flags rate hike pause.
• FTC proposes ban on Meta profiting from minors' data.
• Apple results could mark weak finish to Big Tech earnings.
• Lilly drug slows Alzheimer's by 35%, bolstering treatment approach.
• US FDA approves first RSV vaccine from GSK.
• Qualcomm gives grim outlook as smartphone sales stay weak.
• US services sector still growing; inflation remains sticky.
• Gold firms after Fed signals pause to rate hikes.
• Aluminium, copper prices fall with global outlook concerns.

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