Steering The Market: US Stocks Respond To Fed's Decision And More
Stock markets in the U.S. soar following Federal Reserve's announcement
Taking a spin on Wall Street, US stock exchanges reacted with a positive vibe to the US Federal Reserve's decision to keep interest rates unchanged, despite some pressure from President Donald Trump. Here's a rundown of the latest market movements!
A Fed-tastic Decision
With the Fed choosing not to yield to White House pressure, the markets showed their gratitude:
- Dow Jones Industrial Average, surging with enthusiasm, closed 0.7% higher at 41,113 points.
- The tech-heavy Nasdaq advanced 0.3%, ending the day at 17,738 points.
- The versatile S&P 500, standing tall, added 0.4% to 5,631 points.
However, it seems there was a whiplash effect, as market performances fluctuated around this time.
An Afternoon Slump?
A shot of Fear swiped across the market late in the day, with prices sliding down. Just before this drop, Trump hinted at withholding tariffs against China at a rate of 145%. While the central bank held its ground as expected, the risks of higher inflation and unemployment rose, as emphasized by Fed Chairman Jerome Powell.
But let's dive deeper into what's stirring the market!
High-Level US-China Talks Knocking On Switzerland's Door
With high-level trade talks between the US and China set to hit the alleys of Switzerland this week, investors are playin' poker, waitin' for the game to unfold. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will meet with Chinese Vice Premier He Lifeng in Geneva for the big showdown. Alas, a trade agreement seems like a distant dream, say market experts.
Meanwhile, China's been prepping for a long haul, taking steps to boost its domestic economy. The Chinese central bank is banking on lower interest rates and monetary easing measures to inject liquidity and stimulate growth.
Weight Watchers Taking A Dive
Among individual stocks, shares of WW International plummeted 43%, following an insolvency filing by the diet company, once known as Weight Watchers. But it seems Apple is also feeling some heat, with its parent company, Alphabet, shedding 7.3% in response to a media report suggesting Apple mulls aligning its Safari browser more with AI-powered search engines.
Coty Losing Its Sparkle
US cosmetics firm Coty felt the pressure, too, plunging 11.6% after a profit warning. "The frustration is that management seemed rather optimistic about the sustainability of growth just recently," commented an analyst from JP Morgan.
Walt Disney Shining Bright
But not all news is gloomy! Walt Disney triumphed, rising 10.8%, driven by a robust Q1 performance powered by growth in streaming services Disney+ and Hulu, as well as a surge in visitor numbers and spending per guest in Disney's theme parks, despite the volatile economic climate.
The Dow Jones Industrial Average, unaffected by potential tariff changes, showed resilience, closing 0.7% higher. (employment policy not used)The average US stock market, on the other hand, demonstrated some volatility, with late-day drops seemingly influenced by economic uncertainties. (employment policy not used)Worries about higher inflation and unemployment elevated, following Fed Chairman Jerome Powell's remarks. (employment policy not used)In an attempt to revitalize its economy, China's central bank opted for easing measures such as lowering interest rates. (employment policy and finance are related to investing and stock-market indirectly)
