TheDrop Market Analysis, 03/19/25
Markets surged on Wednesday in reaction to a pivotal Fed meeting that highlighted the stability of the economy.
Index funds generally performed exceptionally well today; the S&P 500 rose 1.1%, the Dow rose 0.9%, and the Nasdaq surged 1.4%. Even the Russell, a key indicator of small business health, rose 1.6%. It is evident that investors poured in to all kinds of equity across the market to express their optimism and general happiness regarding economic matters.
A key Fed meeting this week became publicly known on Wednesday during trading hours, resulting in investors getting a quick, subtle view as to the performance of the economy as well as future prospects by the Fed. Although projecting higher rates of inflation, the Fed did also promise interest rates to be held steady rather than see a possible rise as a result of trickling inflation. Many investors expected Fed chair Powell to make a landmark statement saying that rate hikes would be incoming, but in fact the opposite happened: rate hikes will NOT be happening. Seen as a positive sign for the economy as higher rates could reduce companies' abilities to borrow, investors looked at the news as generally good, contributing to the strong bullish market of the day.
The Nasdaq tickers led the day with gains; Nvidia rose 1.8%, Tesla rose 4.7%, Apple rose 1.2%, Amazon rose 1.4%, and Microsoft rose 1.1%, to name a few. Unfortunately, Intel ended its winning streak of constantly overperforming the rest of the market, with its 6.9% plummet, possibly due to investors not being pleased by its new CEO's announcement today pledging sweeping changes to the structure of the company. Boeing, a key aircraft producer, surged amid a contract deal with several airliners including Japan Airlines, as well as lower fears over tariffs, as President Trump considers some exemptions for the aircraft industry.
