US Equity Markets Rally as Fed Holds Rates Steady

US Equity Markets Rally as Fed Holds Rates Steady

US stocks surged on Wednesday as investors reacted positively to the Federal Reserve’s decision to maintain interest rates at 4.25%–4.50%.

• Nasdaq Composite rose 1.4% to 17,743.5
• S&P 500 climbed 1.1% to 5,674.4
• Dow Jones Industrial Average gained 0.9% to 41,950.4

All sectors ended the day higher, with consumer discretionary and energy stocks leading the gains.

Bond Market & Commodities

• US Treasury yields declined, with the 10-year yield falling 3.8 bps to 4.3%, and the 2-year yield down 6.1 bps to 4%.
• WTI crude oil edged up 0.4% to $67.04 per barrel.
• Gold gained 0.5%, closing at $3,056.60 per ounce, while silver slipped 1% to $34.45 per ounce.

Fed’s Stance & Market Reaction

Federal Reserve Chair Jerome Powell signaled that rate cuts are not imminent due to economic uncertainty and tariff concerns, reinforcing the Fed’s cautious approach.

Notable Stock Moves

• Boeing (BA) soared 6.9%, leading the S&P 500.
• Super Micro Computer (SMCI) climbed 5.8%.
• Caesars Entertainment (CZR) advanced 5.7%.
• Intel (INTC) was the S&P 500’s worst performer, falling 6.9%.
• Progressive (PGR) dropped 3.5%.
• Gilead Sciences (GILD) declined 2.5%.
• Organovo (ONVO) announced a 1-for-12 reverse stock split, sending shares down 32% as it attempts to maintain its Nasdaq listing.