The three primary stock market indices surged to achieve record-high closing levels on Wednesday following the decision by the Federal Reserve to maintain interest rates at a 23-year peak and uphold the expectation of three rate cuts by the end of 2024.
The Dow Jones Industrial Average climbed 401.37 points, or 1.03%, to end at 39,512.13, while the S&P 500 rose by 0.89% to close at 5,224.62, surpassing the 5,200 threshold for the first time ever. The Nasdaq Composite recorded a 1.25% increase to settle at 16,369.41.
Although the Fed opted to keep rates steady, it announced intentions to introduce three rate cuts by the year’s end, echoing its previous forecast made in December. However, the central bank emphasized the need for more evidence of easing inflation before implementing any rate adjustments.
“The Federal Reserve has signaled that it will hold off on any rate cuts until there is more certainty that inflation is moving steadily towards the target of 2 percent,” the central bank stated.
Leading up to the meeting, some investors were concerned that recent inflation data could lead to fewer rate cuts than what had been anticipated by the markets.
Source (CNBC)
