FX.co ★ Wall Street Gains Despite Fed Caution, Trade Worries

On Wednesday, US stocks closed with gains as investors assessed the Federal Reserve's decision to maintain steady interest rates and observed the evolving US-China trade dynamics. The S&P 500 increased by 0.4%, and the Nasdaq 100 rose by 0.3%. The Dow Jones also reported an impressive rise, adding 297 points. As anticipated, the Federal Reserve maintained its benchmark rate within the 4.25% to 4.5% range. Chairman Jerome Powell adopted a cautious outlook, highlighting the rising risks to both inflation and unemployment. He noted that uncertainty remains significant, and the Fed will not rush into rate reductions without more definitive economic indicators. On another front, optimism for progress in the forthcoming US-China trade discussions was subdued, with President Trump asserting that he would not relax tariffs before the negotiations scheduled for this weekend in Switzerland. Nvidia shares advanced by 2.4% following rumors of potential easing in chip trade regulations. Disney surged by 10.9% due to robust growth in its streaming services, while Alphabet declined by 7.5%, with Apple decreasing by 1.4% amid considerations of AI search alternatives.