| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 41,964.63 | 383.32 | 0.92% |
| S&P 500 | 5,675.29 | 60.63 | 1.08% |
| Nasdaq | 17,750.79 | 246.67 | 1.41% |
| VIX | 19.9 | -1.8 | -8.29% |
| Gold | 3,059.10 | 17.9 | 0.59% |
| Oil | 67.19 | 0.03 | 0.04% |
US MARKET
US equities rose on Wednesday following the Federal Reserve’s decision to keep rates steady, as anticipated, while signalling two more rate cuts later this year. Federal Reserve officials held their benchmark interest rate steady for a second straight meeting, caught between mounting concerns that the economy is slowing and inflation could remain stubbornly high.
Chair Jerome Powell acknowledged the high degree of uncertainty from President Donald Trump’s significant policy changes, but repeated the central bank is not in a hurry to adjust borrowing costs. He said officials can wait for greater clarity on the impact of those policies on the economy before acting.
The S&P 500 rose by 1.1%, the Dow Jones gained 384 points, and the Nasdaq 100 led with a 1.4% jump. It seems stagflation is a bull market signal. The Fed’s decision to slow its balance sheet reduction further boosted market sentiment, enhancing liquidity.
Tech stocks held their morning gains as volatility subsided, with Nvidia (up 1.8%), Broadcom (up 3.7%), and Alphabet (up 2.2%) posting solid gains. Tesla also rose by 4.7% after securing $1 billion in equity funding.
LOCAL MARKET
The S&P/ASX 200 Index fell 0.41% to close at 7,828 on Wednesday, snapping a three-day winning streak, as weakness in US technology stocks weighed on sentiment.
Meanwhile, Reserve Bank of Australia Assistant Governor Sarah Hunter stated on Tuesday that the central bank’s February rate cut aimed to “take some restrictiveness away.” However, she noted that the board remains more cautious than markets about the prospects for further easing. Investors are now focused on upcoming Australian employment data, which could provide insights into labour market strength.
Among index heavyweights, Macquarie Group (-1.3%), Aristocrat Leisure (-1.8%), and Mineral Resources (-4.4%) posted notable losses. In corporate news, Capricorn Metals tumbled 4.4% after issuing new shares to settle its remaining gold forward hedging obligations and acquire put options.