Wall Street saw a strong rebound on March 18 as investors welcomed the Federal Reserve’s decision to keep interest rates steady while sticking to its outlook for interest rate cuts later this year.
The Dow Jones Industrial Average jumped 300 points (0.7%), while the S&P 500 climbed 1%, and the Nasdaq Composite gained 1.4%—a refreshing change after a choppy start to the week.
Fed Holds Rates, Markets Cheer Forward Guidance
The Federal Open Market Committee (FOMC) kept the benchmark rate unchanged at 4.25% to 4.50%, a move that was widely expected. What encouraged markets more was the Fed’s reaffirmation of two interest rate cuts in 2025, indicating that policymakers remain confident about managing inflation while supporting economic growth.
Fed Chair Jerome Powell’s comments on the economic landscape and ongoing trade challenges will continue to be closely watched by investors and analysts.
Volatile Week, But Signs of Optimism Return
This bounce-back followed a turbulent session earlier in the week, where markets saw a sharp sell-off. The Dow had dropped 0.6%, the S&P 500 lost 1%, and the Nasdaq slipped 1.7%. Currently, the S&P 500 sits around 8.6% below its February peak, while the Nasdaq remains in correction territory, down more than 10% from its recent high.
Key Stocks That Made Headlines
- Autodesk shares rose nearly 4% after reports of an upcoming proxy battle by an activist investor aiming to shake up the board of directors.
- Strategy (formerly MicroStrategy) surged 5.2% after announcing plans to raise capital for additional Bitcoin purchases, reinforcing its leadership in corporate crypto holdings.
- Boeing stock soared 6.3%, thanks to positive updates from its CFO, who highlighted improved factory performance and reduced cash burn. He also played down concerns about trade tariffs, saying any real impact would depend on how long uncertainty persists.
What to Watch Next
Investors are still navigating through a mix of economic data, policy uncertainties, and global trade concerns. Market participants are now waiting for further signals from the Fed regarding inflation control and growth expectations in the coming months.
Disclaimer: The content provided is for informational purposes only and does not constitute investment advice. Always consult a certified financial advisor before making any financial decisions.
