U.S. Stocks Close Wednesday in Green
The Dow Jones Industrial Average jumped 497.46 points—a 1.05 percent gain—finishing at 48,057.75. The S&P 500 climbed 46.17 points, or 0.67 percent, to reach 6,886.68, narrowly missing a record high by fewer than five points. The Nasdaq Composite Index added 77.67 points, advancing 0.33 percent to close at 23,654.16.
Nine of the S&P 500's 11 major sectors posted increases, led by industrials and materials, which soared 1.84 percent and 1.77 percent respectively. Utilities declined marginally by 0.11 percent, while consumer staples held steady with no movement.
The Federal Open Market Committee (FOMC) concluded its two-day meeting by approving a 25-basis-point rate reduction, meeting analyst predictions and extending the monetary easing cycle that restarted in September. The move signals the central bank's commitment to sustaining economic growth despite cooling employment figures and ongoing inflation challenges.
"In considering the extent and timing of additional 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 FOMC said.
During his press briefing, Fed Chair Jerome Powell indicated the committee's cautious stance effectively ruled out imminent rate hikes.
"I don't think that a rate hike ... is anybody's base case at this point," Powell said, adding, "We're well positioned to wait and see how the economy evolves from here."
Corporate earnings triggered divergent stock reactions Wednesday.
Cracker Barrel Old Country Store Inc. gained 3.52 percent despite posting first-quarter figures that underperformed revenue projections. GameStop tumbled 4.28 percent after delivering disappointing third-quarter results, with revenues sliding 4.5 percent year-over-year to 821 million dollars. Meanwhile, JPMorgan Chase surged 3.19 percent, bouncing back from the previous session's 4.7 percent decline.
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