The Federal Reserve concluded its two-day monetary policy meeting, announcing it would maintain the federal funds rate target range between 3.5% and 3.75%, a decision that aligned with market expectations. Officials held steady as anticipated, keeping the median forecast for one interest rate cut this year unchanged, while acknowledging increased uncertainty due to the Middle East conflict. Key points from the March 18 Fed decision include: the rate target range remains at 3.50% to 3.75%, with the median projection for one cut in 2025 unchanged; the vote was 11-1, with Governor Stephen Milan dissenting in favor of a 25-basis-point reduction; language about labor market stabilization was removed from the statement, replaced with noting the unemployment rate has "changed little in recent months"; projections indicate one rate cut each in 2026 and 2027, with no policymakers favoring a hike this year; the median dot plot expectation was unchanged, with the ratio of officials supporting a cut versus no cut remaining at 12:7, while the long-run median rate was raised to 3.1%; the post-meeting statement saw minimal adjustments to the economic outlook, only slightly raising 2026 GDP growth and inflation expectations; it also noted that Middle East developments create uncertainty and could keep inflation persistently above the Fed's 2% target.
In market trends, major U.S. stock indices closed lower. The Dow Jones Industrial Average fell 768.11 points, the S&P 500 dropped 91.39 points, and the Nasdaq Composite declined 327.11 points. Large-cap tech stocks mostly declined, with Amazon down over 2%. Gold mining shares also fell sharply. Conversely, some optical communication and chip stocks advanced. The Nasdaq Golden Dragon China Index closed down 2.06%. The Hang Seng Index ADR fell 510.76 points. NYMEX WTI crude futures rose $3.52, while COMEX gold futures fell $184.30.
Regarding key developments, Brent crude oil surpassed $108 per barrel after Iran reported attacks on some of its energy facilities and vowed retaliation, escalating tensions that are disrupting global oil supplies. In a separate move, former President Trump issued a waiver for the Jones Act in an effort to curb high oil prices.
TENCENT (00700) reported its full-year results, with revenue reaching RMB 751.766 billion, a 14% year-on-year increase. Profit attributable to equity holders was RMB 224.842 billion, up 16%. The board recommended a final dividend of HK$5.3 per share. The company attributed its healthy growth to AI-enhanced advertising and gaming engagement, plus accelerating cloud revenue. President Martin Lau stated last year's AI product investment was RMB 18 billion, with plans to at least double that this year.
BOSS ZHIPIN-W (02076) announced its 2025 annual net profit was RMB 2.6905 billion, a 71.7% increase year-on-year.
Other corporate updates included Swire Pacific Limited reducing its stake in Cathay Pacific (00293), and CITIC Securities Asset Management cutting its holding in Aluminum Corporation of China (02600). China Silver Group (00815) issued a profit alert forecasting a significant rise in net profit for 2025. Several other companies, including Caike New Energy (01986), Weibo-SW (09898), and Huazhu Group-S (01179), also reported annual earnings.
In IPO news, Fast Innovation (03355) concluded its subscription period, with margin financing applications reportedly exceeding the public offering amount by 1,193.68 times.
Focusing on individual stocks, MicroPort NeuroTech (02172) announced its self-developed APOLLO Dream® Rapamycin Target Eluting Stent System received Breakthrough Device designation from the U.S. FDA, a first for a neurointerventional balloon-expandable, rapid-exchange drug-eluting stent.
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