Wednesday's Markets Update (March 19,2025)

21 Mar 2025 by rate3

On Wednesday, stocks rallied after the Fed held rates steady, as expected, and signaled two rate cuts later this year. The S&P, Dow and Nasdaq jumped. The Fed's softer economic outlook, with weaker growth, higher unemployment, and elevated inflation projections, fueled expectations of rate cuts. Tech stocks Nvidia, Broadcom and Alphabet held gains, while Tesla surged 4after securing $1 billion in funding. The Fed's slower balance sheet reduction boosted liquidity, lifting market sentiment. The Fed lowered growth forecasts but raised inflation expectations, though Powell called tariff impacts 'transitory'. Markets now price in two 2024 rate cuts, with the first likely in June or July. Investors await jobless claims data for labor market insights.

Commodities and Currencies:

The dollar index hovered near a five-month low at 103.4 as the Fed reaffirmed its rate cut outlook. Officials projected another half-point reduction through 2025, despite uncertainties around Trump’s policies.
Crypto:

BTC rose +5%, while ETH surged +6% following major indexes.
The State Of Markets: Mostly In Green: majority of world's market rose as Powell called tariff impacts 'transitory'.