New York, NY – The New York Stock Exchange saw a widespread rally on March 19th as the Federal Reserve reaffirmed its projection of two interest rate cuts within the year. This positive outlook, coupled with Fed Chairman Jerome Powell's reassuring comments on the economy, fueled a surge in investor confidence.
The Dow Jones Industrial Average climbed by 383.32 points (0.92%), closing at 41,964.63. The S&P 500 index rose by 60.63 points (1.08%), reaching 5,675.29, while the Nasdaq Composite Index jumped by 246.67 points (1.41%), closing at 17,750.79.
The Fed's Federal Open Market Committee (FOMC) decided to maintain the current interest rate at its March meeting, keeping it at the 4.25-4.50% range until the next meeting in early May. Crucially, the Fed retained its forecast of two rate cuts in 2025. However, the Fed did revise its economic projections, lowering the GDP growth forecast from 2.1% to 1.7%, raising the inflation forecast from 2.5% to 2.7%, and increasing the unemployment rate forecast from 4.3% to 4.4%.
During a post-meeting press conference, Chairman Powell stated that while the possibility of a recession has increased, it remains relatively low. He addressed concerns about inflation, suggesting that any price increases due to tariffs would be temporary. He also emphasized that long-term inflation expectations remain well-anchored. Powell reiterated the Fed's cautious approach to rate cuts, stating, "We are in a good position to observe the economy and inflation trends further and decide whether to cut or maintain rates."
The S&P 500's rise was particularly driven by strong performances in the energy and technology sectors. Venture Global, a US liquefied natural gas (LNG) producer, saw its stock price increase by 2.85% after receiving approval from the Department of Energy for LNG exports.
Additionally, reports that President Donald Trump would meet with CEOs of major US oil companies to discuss energy dominance and rising power demand led to gains in stocks of companies like ExxonMobil, Chevron, and Marathon.
Major technology stocks also experienced significant gains:
Nvidia: +1.81%
Microsoft: +1.12%
Apple: +1.20%
Alphabet (Google): +2.00%
Tesla: +4.68%
Amazon: +1.41%
Meta(Facebook): +0.29%
This overall market uptrend reflects investor optimism in the face of the Fed's continued commitment to addressing economic challenges while maintaining a path toward eventual interest rate reductions.
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