Microsoft, BlackRock, Nvidia launch $100 billion AI fund

The stock market got a boost this week after the Federal Reserve decided to keep interest rates steady between 4.25% and 4.50%. This decision came with a unanimous vote, but there was some division over a plan to reduce monthly Treasury security holdings. Starting in April, the Fed will cut that reduction from $25 billion to $5 billion. The Fed also shared updated economic projections. Policymakers indicated they might reduce rates by 50 basis points in 2025. However, the number of members expecting fewer cuts this year has increased, suggesting a more cautious outlook. In the tech world, Nvidia, Microsoft, and BlackRock announced a partnership for an artificial intelligence infrastructure fund. This initiative aims to raise up to $100 billion to support AI projects. The fund is starting with $30 billion in capital. This move shows strong confidence in the demand for AI technology. Stocks for these companies rose after the news. Meanwhile, JPMorgan highlighted Meta Platforms as a strong tech stock to consider after recent market losses. Analysts believe Meta has a diverse base of advertisers and strong ad performance, which makes it more resilient in the current economic climate. Meta's stock price is down since February, but analysts expect it to recover. Looking ahead, several companies, including Five Below and Darden Restaurants, will report earnings soon. Analysts are particularly interested in Darden's updates on restaurant trends, especially as warmer weather may boost sales.