FOMC Spurs Rally, Meta's Earnings Drive Gains, ARM's Forecasts Spark Concerns

On Wednesday, the highly anticipated Federal Reserve meeting took place, and the stock market reacted with a bang.

All three major indexes surged, with theS&P 500 rising over 1.5%and theNasdaq jumping more than 2.5%. Nvidia saw an impressive near13%increase.

In macro news, the Federal Reserve kept interest rates unchanged on Wednesday. Fed Chair Jerome Powell stated thatpolicymakers are closer to cutting rates and, if conditions are met, they might do so as early as the September meeting. This certainly reassured the market.

Boosted by positive news, the S&P 500 surged 1.58% yesterday, breaking through the downtrend line，signaling an end to the short-term correction. However, the upper shadow of yesterday's candlestick reached the previous gap level, indicating significant resistance at this point. Therefore, if the price breaks through this resistance level in the coming days, it could trigger a new short-term rally.

On the stock front, Meta shares jumped 7% after hours. This is because Meta's latest earnings report exceeded expectations across the board:revenue was $39.07 billion, up 22% year-over-year, and net profit was $13.465 billion, up 73%.

Technical speaking, Meta stock price has broken below the uptrend line and then found support at the previous gap down candle with high trading volume, initiating a rebound. Currently, the price has rebounded to the resistance level around 476,which share same level with the lower edge of the previous gap. If the price fails to breakabovethis resistance level,it might probably drop more. on the contrary, it might start to go bullish after the valid breakout.

Additionally, chip design giant Arm reported earnings with record-high quarterlyrevenue, surpassing expectations with a39% year-over-year increase.

However, the CFO lowered the growth forecast for key AI-related business, causing Arm to drop more than 10% after hours.

Now, let's look at the price chart for Arm. The stock is in aoveralldowntrend, despite a brief rebound yesterday. The overall trend remains downward. Therefore, it's uncertain whether today presents a buying opportunity after a potential lower open, as no bottoming pattern has emerged yet. However, there's a chance that today's intraday movement could see a recovery from a lower open, given the strong revenue figures reported by the company.