It was a strong day for Wall Street, with all three major indices finishing higher after the Federal Reserve reaffirmed its plan for two interest rate cuts in 2025.
The Dow Jones Industrial Average gained 383 points, closing at 41,964, while the S&P 500 jumped 1.08% to end at 5,675. The Nasdaq Composite led the way, rising 1.41% to settle at 17,750.
Fed decision
The rally followed the Fed’s decision to hold interest rates steady at 4.25% to 4.5%, in line with expectations. More importantly, the central bank maintained its projection for two rate cuts this year, despite noting increased uncertainty in the economic outlook.
Fed Chair Jerome Powell reassured investors, stating that while inflation remains “somewhat elevated,” the economy is strong, and the labor market remains solid. He also downplayed concerns that new trade tariffs would have a lasting impact on inflation.
Investors welcomed the Fed’s steady stance after weeks of market volatility. The S&P 500 had briefly entered correction territory earlier this month, and all three major indices remain well below their recent highs.
Commodities
In commodity news, gold is trading at US$3,047.80 an ounce, up 0.43% and continuing its recent rise. Brent crude is trading at US$70.90 a barrel, up 0.38%.
Futures
Turning to Australia, the SPI futures are pointing to a rise of 53 points.
