Company Interview / the open: ASX set to fall as Fed cuts rates

The local market is set to fall at the open with ASX futures down 0.4% as the S&P500 was boosted by the megacap tech stocks ahead of earnings results after the bell. 

The US Federal Reserve has delivered a highly anticipated interest rate cut. However, Fed chair Jerome Powell has said another rate cut in December is not a foregone conclusion, particularly given the lack of data because of the US government shutdown. Jerome Powell says the board expects the impact of tariffs on prices to be short lived, but warns that inflation could be persistent. 

Markets ultimately perceived the Fed move as a hawkish cut, which led to a choppy trade on Wall Street with the major indices mixed. Results from Microsoft saw it spend nearly $35 billion on AI in its fiscal first quarter, surpassing market expectations, whilst Nvidia became the first company to reach $5 trillion in market value, powered by a rally that has cemented its place at the center of the global AI boom. 

The US dollar index is up 0.6% on the day, whilst the Australian dollar has eased to $65.8 cents.