US stocks
soared on Wednesday as investors cheered the Federal Reserve’s decision to hold interest rates steady, coupled with a tech revival that sent the Nasdaq skyrocketing.
The S&P 500 climbed nearly 1.6%, while the tech-heavy Nasdaq Composite jumped over 2.6%. The Dow Jones Industrial Average saw a modest rise of 0.2%.
Stocks gained momentum as Fed Chair Jerome Powell hinted at a potential rate cut in September.
While he clarified that no decisions have been made regarding future meetings, he noted that the economy is nearing a point where reducing the policy rate could be appropriate.
Tech stocks, previously battered, bounced back. Initial earnings reports from the “Magnificent Seven” megacaps had stirred fears that the AI boost might falter. However, positive news rejuvenated chip stocks.
AMD shares soared on an AI-driven earnings beat, and Nvidia surged over 12%, recovering from a steep drop on Tuesday.
Morgan Stanley highlighted Nvidia’s recent 25% drawdown as a “good entry point,” marking a sentiment shift in what has been a challenging July for the AI leader.
In commodities, oil prices spiked following the killing of Hamas’ political leader in an airstrike, escalating geopolitical tensions.
Brent crude futures rose over 4% to top $81 a barrel, while US benchmark West Intermediate crude futures climbed above $78 a barrel, also gaining over 4%.
After the bell, Meta stock rose more than 4% following second-quarter earnings that surpassed Wall Street’s expectations for both revenue and earnings per share, bringing optimism to the business sector.
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