The rally on Wall Street came after the Fed announced its widely expected decision to leave interest rates unchanged but also maintained its forecast for three rate cuts this year. The latest projections suggest Fed officials expect rates to be lowered to a range of 4.50 to 4.75 percent by the end of 2024.
At closing bell, the Dow Jones Industrial Average index advanced by 401.37 points, or 1.03%, to 39,512.13. The S&P500 index added 46.11 points, or 0.89%, to 5,224.62. The tech-heavy Nasdaq Composite index grew 202.62 points, or 1.25%, to 16,369.41.
Total 9 of the 11 major S&P 500 sectors inclined, with information technology, industrials, financials, communication services, consumer discretionary, energy sectors being top performers, all rising between 1% to 1.5%, while healthcare sector was bottom performer, falling 0.23%.
ECONOMIC NEWS: US Fed Keeps Interest Rate Unchanged- The Federal Reserve announced its widely expected decision to leave interest rates unchanged on Wednesday, although the central bank's forecasts suggests rate cuts are still likely later this year. In support of its dual goals of maximum employment and inflation at a rate of 2% over the longer run, the Fed said it once again decided to maintain the target range for the federal funds rate at 5.25 to 5.50%. The target range for the federal funds rate has remained unchanged since the Fed raised rates by a quarter point last July. The Fed's accompanying statement acknowledged inflation has eased over the past year but reiterated officials do not expect it will be appropriate to lower rates until they have gained "greater confidence" inflation is moving sustainably toward 2%. Along with announcing the interest rate decision, Fed officials also provided updated projections for the economy and interest rates. The latest projections suggest Fed officials expect rates to be lowered to a range of 4.50 to 4.75% by the end of 2024. At the same time, Fed officials raised their forecast for rates at the end of 2025 to a range of 3.75 to 4.0% from the range of 3.50 to 3.75% forecast in December. Fed officials also increased their forecast for GDP growth in 2024 to 2.1% from 1.4% in December, while the forecast for core consumer price growth was raised to 2.6% from 2.4%.
Powered by Capital Market - Live News