Wall Street is ahead of the Fed’s announcement
NEW YORK (AP) – US stock indexes are rising Wednesday as Wall Street waits to hear what Federal Reserve System In the afternoon, you’ll say where the interest rates are heading.
The S&P 500 rose 0.8% in afternoon trading. The Dow Jones industrial average rose 262 points (0.6%) as of 12:33 pm east time, with the Nasdaq Composite rising 1%.
The relatively quiet trade is a continuation of rest week of sharp and scared Shaking the US stock market. There is high uncertainty how much pain President Donald Trump It allows the economy to withstand in order to rebuild the system the way he wants. He says he wants manufacturing jobs in the US and wants far fewer people working for the federal government.
Trump’s barrage of announcement It creates so much uncertainty that economists worry us about tariffs and other policies. business and Household You can freeze and recoup your spending.
If the economy gets weaker, the Fed can lower interest rates to boost it, like so many recessions. The main interest rates sit in the 4.25% to 4.50% range, so there is plenty of room to cut.
However, the conditions can be even more complicated for the Fed this time. In addition to stealing the economy, we also push forward with lowering rates. inflation Upper, there is already high concern about inflation due to tariffs. The Fed does not have a good tool to fix something called “. Stagflation,” the economy is stagnating, but inflation remains high.
Virtually all Wall Street is waiting to see how conditions unfold, so we look forward to the Fed to announce that there will be no changes in key interest rates this afternoon. For now, Job Market Overall it appears to be relatively solid after the economy closed last year Run at a solid pace.
More important to investors is the set of forecasts that the central bank will release after the meeting is over. It shows where Fed officials are looking at interest rates, the economy and inflation rates over the next few years.
The expectations among traders are that the Fed will lower the fee at least two or three times by the end of 2025.
On Wall Street, nvidia It supported the market after gaining 1.9%, cutting previous year losses to 12.4%. that Hosted the event According to UBS analysts led by Timothy Arcuri, demand for computing power is slowing as they fought back with speculation on Tuesday, saying, “We did a great job laying out the roadmap and laying out the roadmap.”
Tesla Also, two straight losses of about 5% rose 4.4%, following two linear losses. So far, 2025 has still fallen 41.7%. It’s a pain to worry that CEO Elon Musk has turned off customers due to major efforts to cut spending by the US government.