Investment Manager Reveals: S&P 500 and Nasdaq Surge as Fed Signals Possible Rate Cut in September
By Chibuike Oguh
NEW YORK (Multibagger) - The S&P 500 and Nasdaq extended early gains on Wednesday after the Federal Reserve left U.S. interest rates unchanged but indicated it could begin easing monetary policy in September if inflation cools.
Top sectors of the benchmark S&P 500 advanced, with technology and consumer discretionary stocks leading the way. Both the Nasdaq and the blue-chip Dow also saw gains.
The Fed kept its benchmark overnight interest rate in the 5.25%-5.50% range as it concluded its two-day policymaking meeting on Wednesday, but left the door open to easing in September, just seven weeks before the November U.S. elections.
The Dow rose 0.82%, reaching 41,077.32, the S&P 500 gained 1.97% to 5,543.34, and the Nasdaq surged 3.08% to 17,674.89.
Analysis: The Federal Reserve's decision to hold rates steady for now and the indication of a possible rate cut in September has sparked optimism in the market, leading to gains in major indices. Investors are eagerly awaiting the potential rate cut, which could impact various sectors and boost market performance.