Wall Street Rises on Tech, Fed Focus

The Federal Reserve kept its key interest rate unchanged and confirmed that it expects to make two rate cuts before the end of the year.

All three major Wall Street indexes closed higher on Wednesday, boosted by a tech-led rally as the market assessed the Federal Reserve’s economic outlook.

The Dow Jones Industrial Average, composed of 30 major companies, rose 0.92% to 41,964.63 points. The S&P 500, representing the largest companies, gained 1.08% to 5,675.29 points, while the tech-heavy Nasdaq Composite climbed 1.41% to 17,750.79 points.

Fed Interest Rate Decision

The Fed maintained its benchmark interest rate and confirmed that it expects to cut rates twice before the year’s end. The central bank also raised its inflation forecast and reduced its projections for economic growth. While inflation expectations rose slightly and GDP figures were revised lower, the market interpreted the Fed’s stance as not contributing to the current uncertainty.

Tech stocks, which have been volatile recently, rallied following Nvidia’s conference (+1.81%), where the company presented its new products and growth prospects in AI.

Main Movers and Sectors

Tesla shares (+4.58%), owned by the world’s richest man, Elon Musk, rebounded after two days of sharp losses and after U.S. President Donald Trump labeled the recent attacks on Tesla facilities as domestic terrorism.

Other tech stocks, part of the group known as the “Magnificent Seven,” also saw gains. Notable among them were Alphabet (+2.22%), Google’s parent company, followed by Amazon (+1.41%), Apple (+1.20%), Microsoft (+1.12%), and Meta (+0.29%).