The Fed Holds Interest Rates in a 10–2 Vote. Here's What This Means for Artificial Intelligence (AI) Stocks.

The Federal Reserve held interest rates steady at 3.75%-4% in a 10-2 vote, with two dissenting members voting for a rate hike. AI and semiconductor stocks responded positively to the decision, as higher interest rates negatively impact growth and infrastructure stocks that rely on future earnings. However, Fed Chair Warsh signaled future rate hikes are likely, with markets pricing in a 78% probability of a December rate increase.