By Yasin Ebrahim

Investing.com – The S&P 500 rallied Wednesday as Microsoft-led a resurgence in tech ahead of the Federal Reserve decision later today.

It fell by 2%. This puts the index in correction territory, with more than 10% loss from its peak. With 663 points falling, the Nasdaq lost 2% and now is in bear territory with losses around 18% from its peak.

Microsoft (NASDAQ 🙂 was more than four percent higher after Microsoft delivered an optimistic outlook for revenue in Q2 following its better-than-expected results.

Microsoft’s guidance for third-quarter revenue was between $48.5 billion & $49.3 Billion, as opposed to Wall Street estimates at $48.9 Billion.

“Microsoft’s cloud guidance was stronger than the Street and when factoring in F/X headwinds we would characterize this as a blowout guide in terms of how investors will digest these numbers” Wedbush said in a note.

Microsoft’s bullish results helped to stabilize sentiment in the market for growth, including the consumer discretionary sector. This was after days of selling.

Tesla (NASDAQ:), rose over 4% before its quarterly results, which are due shortly after market closes. Apple (NASDAQ) reported its fourth quarter results Thursday. It was up 2% 

Boeing Co (NYSE:) fell 3% after the market crashed. The aircraft manufacturer reported a larger than anticipated loss in the fourth quarter and revenues were below estimates due to delays in 787 Dreamliner deliveries.

Wall Street is greener than the Federal Reserve’s monetary policy update. This will be followed by a Fed Chairman Jerome Powell press conference.

Expect the Fed to announce a March rate increase and indicate that it may reduce its assets to combat inflation.