The session results indicate that the Dow Jones Industrial Average rose by 0.70%, the Nasdaq advanced by 0.27%, and the broader S&P500 gained 0.43%.
“Investors expected the Fed to take no action, and the Fed did not disappoint them,” commented Ali Hassan of Thornburg Investment Management in an analytical note.
The Fed today decided to maintain its benchmark interest rate in the range of 4.25% to 4.50%, a level it has kept since December.
According to Peter Cardillo of Spartan Capital Securities, “This was no surprise” for most investors, who do not anticipate a rate cut before at least July.
In summary, “investors just yawned at the Fed” because “nothing changed,” said Adam Sarhan of 50 Park Investments to AFP.
Before settling in the mid-session direction, the stock market experienced some turbulence following the statements of Fed Chairman Jerome Powell.
There is “a lot of uncertainty” about the consequences of the rise in tariffs, he warned.
“If the announced hikes persist, there is a risk of increased inflation, decreased economic growth, and rising unemployment,” he warned.
He added that it would be a “difficult scenario” for the Fed to see unemployment rise alongside prices.
On another note, “investors need clarity on tariffs” to adopt clear directions, Cardillo considered.
It has been revealed that the US Treasury Secretary and the Chinese Vice Premier will meet over the weekend in Switzerland, the two capitals have informed, with Trump’s tariffs and the subsequent Chinese response likely to dominate the discussions.
This potential for negotiations regarding tariffs has somehow supported the stock market.
However, broadly speaking, “investors are looking for the next stock market catalyst,” Sarhan summarized.
