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After the announcement of the Fed, S&P 500 was 0.8% above the afternoon trading, which increased slightly. Dow Jones Industrial Average was 210 points by 2:20 pm, or 0.5% above, and Nasdaq composite was 1.2% higher.
Fed officials increased US shares after indicating, they can still cut rates twice by the end of this year, as if they were forecasting at the end of the previous year. (AP image)
The US Stock Index is growing on Wednesday after the Federal Reserve kept its main interest rate stable, as was widely expected, and indicated a step that could keep the long -term interest rates low.
After the announcement of the Fed, S&P 500 was 0.8% above the afternoon trading, which increased slightly. Dow Jones Industrial Average was 210 points by 2:20 pm, or 0.5% above, and Nasdaq composite was 1.2% higher.
The relatively quiet trade provides a relief for the US stock market after weeks of sharp and scary swings. Uncertainty is more about how much pain President Donald Trump will hurt that he will allow the economy to bear the system to remake the system. He said that he wants to build jobs back in the United States and there are very few people working for the federal government.
The barrage of Trump’s declarations on tariffs and other policies has created so much uncertainty that economists worry that American businesses and homes can freeze and pull back at their expense.
Against such a cloud background, Fed decided to wait and decided to see how the circumstances play before making the next step at interest rates. Low rates will boost the economy, but they can also pursue inflation when concerns are already high due to tariffs.
Fed officials indicated that they could still cut rates by the end of this year, as if they were forecasting at the end of last year. But they are weak growth for the American economy and also for higher inflation than before.
It is afraid of what “stagflation” is called, where the economy is stabilized, but inflation remains more. The Fed does not have good equipment to fix such toxic combinations.
Despite such a warning, the stock still increased, as low treasury yields in the bond market reduced some pressure. Fed said it would start the monthly cut of its travelers starting in April. This means that it will allow up to 5 billion dollars of the trevus to mature every month below a $ 25 billion hat, below a $ 25 billion hat.
By reinstalling more in the treasury every month, the Fed will essentially help to keep long -term yields low, as they will be otherwise.
Just before the Fed announced its decision, the yield on a 10 -year Treasury decreased from 4.31% to 4.27%.
On Wall Street, Nvidia helped support the market after 2.8% increase to cut its loss for the year. It hosted an event on Tuesday, where it was largely a good job to exclude the roadmap “and according to UBS analysts leading Timothy Archuri, the artificial-Khukfiyata industry is seeing a recession in demand for computing power.
Tesla also increased 3.6%after two straight losses of about 5%. It is still 42.2% below 2025. It is struggling over concerns that customers are closed by the leading efforts by CEO Elone Musk to spend by the US government.
Big Tech has generally been at the center of the recent market in the market, as the stock which seemed invincible first, was rapidly dropped after criticism, they were just very expensive.
On Wednesday, there were general mills in favor of Wall Street’s defeat, which fell 2.2% despite reporting a strong profit for the latest quarter expected by analysts.
Due to the recession in sales for snacks, the revenue of the grain and snack manufacturer decreased by the goals of analysts. General Mills cut the forecast for revenue and profit throughout its financial year, partly because it hopes “macroeconomic uncertainty” continued to influence their customers.
In stock markets abroad, Nikkei 225 of Japan slipped 0.2% when the Bank of Japan kept stable at its interest rates, as was widely expected. Japan reported a trade surplus for February, with the export growing more than 11% as manufacturers ran to defeat the growing tariffs imposed by Trump.
Other indexes were mixed all over Europe and Asia.
(This story has not been edited by News18 employees and a syndicated news agency is published from the Associated Press)
