Market News
Wall Street saw significant gains on Wednesday, driven by comments from Fed officials. Despite no rate hike at the March Fed FOMC meeting, there were hints of three potential rate cuts this year. Strong earnings results were being evaluated by market participants, leading to all three major stock indexes ending in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 1% or 401.37 points to close at 39,512.13. Of the 30 stocks in the index, 28 ended in the green while two finished in the red.
The Nasdaq, known for its tech-heavy components, added 1.3% or 202.62 points to close at 16,369.41.
The S&P 500 climbed 0.9% or 46.11 points to end at 5,224.62. Nine out of the 11 sectors of the benchmark closed in positive territory, with the Consumer Discretionary, Technology, Communication Services, and Industrials sectors leading the gains.
The fear-gauge CBOE Volatility Index (VIX) decreased by 5.6% to 13.04. Trading activity was high with 11.67 billion shares exchanged, exceeding the 20-session average. The S&P 500 and Nasdaq Composite each saw new 52-week highs.
Fed Holds Rates Amid Inflation Worries
The Federal Open Market Committee (FOMC) decided to keep the federal funds rate target range steady at 5.25-5.5%. Most officials still anticipate three rate cuts this year, despite recent inflation reports. Fed Chair Jerome Powell emphasized the need for evidence before considering any policy changes, aiming to balance economic growth and inflation management.
Solid Q4 Earnings
Sportradar Group AG and General Mills reported strong fourth-quarter earnings, beating expectations. Both companies saw positive stock returns following their earnings releases. Sportradar and General Mills carry a Zacks Rank #3 (Hold).
Economic Data
U.S. commercial crude oil inventories decreased by 2 million barrels for the week ended Mar 15.
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