Dow Jones jumps 401 points as Fed keeps rates unchanged
NEW YORK, New York — U.S. stocks closed sharply higher Wednesday after the Federal Reserve kept interest rates untouched, and reasserted three cuts were planned for later this year. However the proposed cuts are not inevitable, they will only come if inflation is seen to be being contained. "The Committee seeks to achieve maximum employment and inflation at the rate of two percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the Federal Reserve statement issued after Wednesday’s conclusion to its regular two-day monthly meeting said. (See full statement below). "We had some inflation bumps this year but Jerome Powell’s not blinking," David Russell, global head of market strategy at TradeStation told CNBC Wednesday. "Investors are relieved to see three cuts stay in the dot plot, supporting markets and risk appetite. The Fed might wake up with a hangover, but the punchbowl isn’t going away yet." Wednesday’s trading session concluded with major stock market indices posting gains across the board, indicating positive sentiment among investors. Here’s a breakdown of the closing quotes for key indices: S&P 500 (^GSPC): The S&P 500 index closed at 5,224.62, marking a gain of 46.11 points or +0.89 percent. Dow Jones Industrial Average (^DJI): The Dow Jones Industrial Average finished at 39,512.13, up by 401.37 points or +1.03 percent. NASDAQ Composite (^IXIC): The NASDAQ Composite index concluded at 16,369.41, showing an increase of 202.62 points or +1.25 percent. These positive movements in the stock market indices reflect growing optimism among investors, driven by various factors such as strong corporate earnings, positive economic data, and improving market sentiment. Market participants continue to closely monitor developments both domestically and internationally as they navigate through evolving market conditions. Trading volumes were significant across major exchanges, with billions of dollars in shares traded, indicating active participation from investors. In Wednesday’s foreign exchange market activity, major currency pairs displayed mixed movements, reflecting diverse global economic sentiments. Here are the latest quotes: EUR/USD: The Euro against the US dollar recorded a rate of 1.0916, marking an increase of 0.47 percent or +0.0051. USD/JPY: The Japanese yen was the only major to lose ground to the greenback, falling to 151.16, down 0.21 percent or -0.32. USD/CAD: The Canadian dollar firmed to 1.3493, indicating an increase of 0.54 percent or +0.0073. GBP/USD: The British pound was last quoted at 1.2780 Wednesday, reflecting a rise of 0.46 percent or +0.0059. USD/CHF: The Swiss franc edged up to 0.8865, demonstrating rise of 0.17 percent or +0.0015. AUD/USD: The Australian dollar against the US dollar recorded a rate of 0.6580, showing an increase of 0.74 percent or +0.0048. NZD/USD: The New Zealand dollar compared to the US dollar stood at 0.6079, indicating a rise of 0.46 percent or .0027. At the close of trading on Wednesday, major global stock indices exhibited a mixed performance, with some showing marginal gains while others experienced slight declines. Here’s a summary of the key market indices: CANADA S&P/TSX Composite index (^GSPTSE): Canada’s S&P/TSX Composite index ended the day at 22,045.71, gaining 185.13 points or +0.85 percent. UNITED KINGDOM FTSE 100 (^FTSE): The London-based index closed at 7,737.38, showing a decrease of 0.92 points or -0.01 percent. EUROPE DAX PERFORMANCE-INDEX (^GDAXI): Germany’s DAX index ended the day at 18,015.13, marking a modest increase of 27.64 points or +0.15 percent. CAC 40 (^FCHI): In Paris, France, the CAC 40 closed at 8,161.41, down by 39.63 points or -0.48 percent. ESTX 50 PR.EUR (^STOXX50E): The Eurozone’s ESTX 50 PR.EUR finished at 5,000.31, down by 7.61 points or -0.15 percent. Euronext 100 Index (^N100): The Euronext 100 Index closed at 1,501.71 Wednesday, showing a decrease of 1.71 points or -0.11 percent. BEL 20 (^BFX): Belgium’s BEL 20 concluded at 3,685.41, with an increase of 4.27 points or +0.12 percent. RUSSIA MOEX Russia Index (IMOEX.ME): In Moscow, the MOEX Russia Index closed at 2,222.51, down by 4.14 points or -0.19 percent. ASIA Nikkei 225 (^N225): Japan’s Nikkei 225 finished at 40,003.60, gaining 263.20 points or +0.66 percent. HANG SENG INDEX (^HSI): In Hong Kong on Wednesday, the Hang Seng Index concluded at 16,543.07, rising by 13.59 points or +0.08 percent. SSE Composite Index (000001.SS): China’s SSE Composite Index closed at 3,079.69, with an increase of 16.93 points or +0.55 percent. Shenzhen Index (399001.SZ): The Shenzhen Index finished at 9,717.37, up by 20.69 points or +0.21 percent. STI Index (^STI): Singapore’s STI Index ended at 3,177.48, rising by 3.93 points or +0.12 percent. S&P BSE SENSEX (^BSESN): In India, the S&P BSE SENSEX finished at 72,101.69, up by 89.64 points or +0.12 percent. NIFTY 50 (^NSEI): India’s NIFTY 50 concluded at 21,839.10 Wednesday, showing a slight increase of 21.65 points or +0.10 percent. FTSE Bursa Malaysia KLCI (^KLSE): The FTSE Bursa Malaysia KLCI closed at 1,535.79, down by 9.17 points or -0.59 percent. KOSPI Composite Index (^KS11): South Korea’s KOSPI Composite Index ended at 2,690.14, rising by 33.97 points or +1.28 percent. TSEC weighted index (^TWII): The Taiwan TSEC weighted index closed at 19,784.45, showing a decrease of 72.75 points or -0.37 percent. OCEANIA S&P/ASX 200 [XJO] (^AXJO): Australia’s S&P/ASX 200 ended at 7,695.80 Wednesday, showing a decrease of 7.40 points or -0.10 percent. ALL ORDINARIES [XAO] (^AORD): The Australian ALL ORDINARIES Index closed at 7,954.50, showing a decrease of 3.30 points or -0.04 percent. S&P/NZX 50 INDEX GROSS (^NZ50): New Zealand’s S&P/NZX 50 INDEX GROSS concluded at 11,832.71, with an increase of 14.80 points or +0.13 percent. AFRICA Top 40 USD Net TRI Index (^JN0U.JO): In South Africa, the Top 40 USD Net TRI Index closed at 3,780.00, marking an increase of 52.01 points or +1.40 percent. MIDDLE EAST TA-125 (^TA125.TA): Israel’s TA-125 finished at 2,008.47 Wednesday, up by 27.23 points or +1.37 percent. EGX 30 Price Return Index (^CASE30): In Cairo, the EGX 30 Price Return Index closed at 28,589.40, down by 86.30 points or -0.30 percent. Following is the full statement issued by the Federal Reserve following the FOMC’s two-day meeting which concluded on Wednesday: "Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated." "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the FOMC statement said. "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective." "In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments," the FOMC said. Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; Loretta J. Mester; and Christopher J. Waller. (Photo credit: Big New Network news agency).
Wednesday’s Foreign Exchange Market Report Sees U.S. Dollar Lose Steam
Global Stock Markets See Mixed Results at Wednesday’s Close
