As expected, the U.S. Federal Reserve left its key interest rate steady in a range between 3.5%-3.75%.
But what investors were really keeping their eyes peeled for were signs of political fingerprints on the independent central bank.
On his attendance of the legal case against Fed Governor Lisa Cook — which will decide if U.S. President Donald Trump can fire her — Chair Jerome Powell said, "That case is perhaps the most important legal case in the Fed's 113-year history. ... it might be hard to explain why I didn't attend."
Powell also left some advice to the next Fed chair. "Don't get pulled into elected politics," Powell said. "Don't do it."
The political sphere is indeed a tricky one to navigate. U.K. Prime Minister Keir Starmer is currently visiting China — the first trip to Beijing by a British leader in eight years — in what appears to be an attempt to mend ties with the world's second-largest economy.
There already appears to be some payoff: China and Britain will deepen their cooperation in key sectors, according to a statement released by Chinese state media Thursday.
Earnings also dominated the news. Meta Platforms, Microsoft and Tesla reported results after markets closed. Even though all beat expectations for earnings per share and revenue, investors were selective with their rewards: shares of Meta and Tesla rose, while those of Microsoft fell.
On Wednesday, the S&P 500 touched the 7,000 level for the first time but closed below that threshold. The U.S. dollar strengthened after Treasury Secretary denied reports that the country was intervening in the currency market.
Over in Europe, Deutsche Bank on Thursday announced record profits during the last quarter of 2025, while Swiss pharmaceutical company Roche's projected "high single digit" growth in 2026 for its core earnings per share.
Meanwhile, gold prices surged past $5,500 to hit another record high — but one analyst thinks the precious metals markets is "broken." With Apple next in line to report earnings, investors have plenty, still, to monitor.
— CNBC's Alex Harring contributed to this report.
What you need to know today
Fed keeps interest rates unchanged. The decision, announced Wednesday, was not unanimous — Governors Stephen Miran and Christopher Waller voted for a quarter-point cut. Chair Jerome Powell said the U.S. economy looks stronger than it did last year.
Nvidia's AI boom has ASML to thank. The Dutch semiconductor equipment firm is the only company in the world that makes lithography machines required to manufacture the most advanced semiconductors. Nvidia's Blackwell relies on ASML's technology for production.
Samsung Electronics is dethroned. SK Hynix beat rival Samsung Electronics in operating profit for the first time in 2025. The former's success is in large part because of its position as the global leader in high-bandwidth memory used in AI processors and servers.
The S&P 500 briefly surpassed 7,000. However, the broad-based index ended the day 0.01% lower. The Dow was also flat while the Nasdaq Composite rose. Asia-Pacific markets mostly rose Thursday. Shares of Samsung Electronics fell even as the firm reported record quarterly revenue.
[PRO] A longer wait for rate cuts. Analysts say that the Fed's recently concluded meeting, as well as current market conditions, suggest monetary policy might not be loosened in the near future.
And finally...
Safe haven assets are off to a good start in 2026, with widespread uncertainty sending gold and silver to new records and the Swiss franc trading at decade highs.
But in Switzerland, policymakers are watching with apprehension. Unlike regional powers, Switzerland is battling sluggish price growth, and a strengthening franc could add further disinflationary pressure to the country's export-driven economy.
— Chloe Taylor
