US Stocks Rally as Fed Signals Rate Cuts
US equities surged on Wednesday following the Federal Reserve's decision to keep rates steady, as anticipated, while signaling two more rate cuts later this year.
The S&P 500 rose by 1.1%, the Dow Jones gained 384 points, and the Nasdaq 100 led with a 1.4% jump. Projections from the FOMC reinforced expectations of multiple rate cuts this year, as the economic outlook softened with weaker growth forecasts and rising unemployment, alongside higher inflation projections due to President Trump's policies.
Tech stocks held their morning gains as volatility subsided, with Nvidia (up 1.8%), Broadcom (up 3.7%), and Alphabet (up 2.2%) posting solid gains. Tesla also rose by 4.7% after securing $1 billion in equity funding. The Fed’s decision to slow its balance sheet reduction further boosted market sentiment, enhancing liquidity.
Source: Trading Economics