Good afternoon and welcome to Markets Desk. Here's what's moving the tape right now.
The Federal Reserve under Kevin Warsh has delivered its first interest rate hike in three years, lifting its benchmark rate by a quarter point as policymakers continue their fight against persistent inflation. Markets absorbed the decision with relative calm — the S and P five hundred holding gains of roughly a third of a percent, while the Nasdaq outperformed, up nearly seven tenths. Traders appear to be pricing in one additional hike ahead, which keeps the rate path well within expectations and explains why equities didn't flinch.
Turning to tech, an analyst is making the case that Wall Street is asking the wrong question about Alphabet. Rather than obsessing over how Google's AI models stack up against the competition, the smarter lens is Google Cloud — where AI workloads translate directly into revenue. The argument is that Alphabet's infrastructure advantage is being systematically undervalued by investors chasing model benchmarks.
And on Capitol Hill, the House has voted to hold billionaire Leon Black in contempt of Congress after he defied subpoenas tied to the ongoing Jeffrey Epstein investigation. Black is suing to block those subpoenas, but the committee is pressing forward — and separately, its chairman has introduced legislation that would allow sexual abuse survivors to void nondisclosure agreements that have kept them silent.
That's the tape. Markets Desk, signing off the floor.
