Stock market today: U.S. stocks rally as Federal reserve holds interest rates steady, Dow Jones, S&P 500, and Nasdaq gain amid inflation and trade policy concerns

interest rates steady. The Nasdaq Composite gained 0.3%, while the Dow Jones Industrial Average and S&P 500 both rose by 0.2%. This marked a continuation of Wednesday’s rally, which was fueled by Fed Chair Jerome Powell’s reassuring statements on inflation and recession risks. Despite prior concerns, Powell’s projection of two rate cuts later this year encouraged investor confidence.

Why did the stock market rise after the Fed’s decision?

The Fed’s decision to keep rates unchanged was anticipated, but Powell’s optimistic tone ignited market enthusiasm. He emphasized that inflation, driven partly by tariffs, is likely to be “transitory.” Moreover, Powell assured that recession risks are minimal despite a slowing economy. This balance between stability and caution lifted investor sentiment.

Are President Trump's tariff policies impacting market performance?

President Trump’s evolving tariff strategy continues to influence market movements. On social media, Trump urged the Fed to “CUT RATES” as tariffs gradually impact the economy. The possibility of further rate cuts in response to trade pressures added complexity to the market's outlook.

What economic indicators are supporting the market’s growth?

Multiple economic reports boosted investor confidence:

• Unemployment Claims: Fewer-than-expected claims last week indicated continued labor market strength.
• Housing Market: Sales of previously owned homes exceeded analyst projections, signaling strong consumer demand.
• Manufacturing Growth: Better-than-expected growth in the mid-Atlantic manufacturing sector alleviated fears of a broader slowdown.

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What did Jerome Powell say about economic uncertainty?

Powell acknowledged that uncertainty remains high due to