Stocks Rise as Fed Holds Rates Steady
U.S. stocks climbed on Wednesday as the Federal Reserve maintained its interest rates. The S&P 500 gained 0.43%, the Nasdaq Composite rose 0.27%, adn the Dow Jones Industrial Average climbed 0.7%.
Investors were relieved as the Fed kept rates unchanged, ranging between 4.25% and 4.5%. DisneyS strong earnings and a surge in Disney+ subscribers boosted the Dow. The Fed’s decision came with a cautious note. Chair Jerome Powell admitted the economic outlook is uncertain.
Disney’s positive earnings report and subscriber growth for Disney+ lifted the Dow. The Fed’s benchmark rate stayed at 4.25%-4.5%. Powell noted rising economic uncertainty. The Fed’s statement and Powell’s remarks highlighted worries about inflation and economic slowdown. The committee remains vigilant against price hikes while monitoring economic health.
Trade policies are also in focus.Former President Trump stated he won’t cut Chinese tariffs before U.S.-China talks in Switzerland. This stance could impact global trade. Meanwhile, the Fed’s statement and Powell’s press conference showed concerns about inflation and unemployment. The committee is balancing price stability with job market health.
Markets responded positively to the Fed’s cautious approach.
Trade tensions remain high. Trump’s refusal to ease Chinese tariffs before talks could disrupt global markets. powell warned that higher tariffs might slow growth and hike inflation.
On the tech front, Nvidia’s shares rose following reports of potential changes in AI chip export rules. Though, Alphabet’s stock dropped after rumors of Apple ending its Google search partnership in safari.
