US stock markets surged on Wednesday following the Federal Reserve's decision to keep interest rates steady between 4.25% and 4.50% for the second consecutive meeting, signaling a pause in its tightening cycle. This move seems to have helped ease investor concerns about further rate hikes and potential impacts on economic growth.
Additionally, the Fed's latest projections showed that policymakers expect to cut rates by 50 basis points in 2025, further boosting market sentiment. Also, Powell remarked that while the likelihood of a recession has slightly increased, the overall risk remains low. These signals of a more dovish stance in the future were seen as favorable for stocks.
The Dow Jones Industrial Average soared by 1.09% or 451 points at 2:59 pm ET. The Nasdaq 100 rose 1.82%. The S&P 500 climbed by 1.44%. The euro lost 0.34% against the dollar at 2:59 pm ET to sell for $1.09077.
