Major indexes saw a significant increase on Wednesday after the Federal Reserve announced that they would be keeping interest rates steady and indicated that three interest rate cuts are still expected for this year. Nvidia also saw an uptick for the third consecutive session, while investor Cathie Wood sold shares of Block.
The Federal Reserve concluded their two-day meeting with policymakers still anticipating three quarter-point interest rate cuts this year, despite a strong stock market and recent inflation hike. Chairman Jerome Powell mentioned that if the Committee’s forecasts come to fruition and inflation eases, a decrease in rates would be appropriate, depending on monthly inflation data.
The Dow Jones Industrial Average surged 401 points on Wednesday, closing 1% higher, while the S&P 500 and Nasdaq also experienced gains. Volume was higher on both the New York Stock Exchange and the Nasdaq compared to the previous day. Small cap stocks on the Russell 2000 outperformed the major indexes, and the yield on the 10-year Treasury note dropped more than 2 basis points.
In terms of specific stocks, Nvidia rose, Super Micro Computer continued to decline, and Arista Networks broke out from a flat base. Cathie Wood sold shares of Block, which then saw an increase in share price. Boeing, Disney, and Merck were among the top gainers on the Dow Jones, while Nike struggled below its 50-day moving average.
Earnings reports influenced retail stocks, with Ollie’s Bargain Outlet and General Mills seeing gains. Chinese internet retail play PDD initially soared after beating sales and earnings views but pulled back later. Lululemon and Darden Restaurants are due to report earnings on Thursday, while Chipotle Mexican Grill rose after announcing a 50-for-1 stock split.
Other notable movers included Texas Roadhouse, Marriott, Alphabet, Neurocrine Biosciences, Shockwave Medical, and Astera Labs.
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