U.S. stocks soared higher towards closing bell, riding on momentum as the Federal Reserve opted to maintain interest rates at current levels.
The Dow showed strength, climbing 0.91% to 39,467.76, with the NASDAQ trailing closely, up 1.08% to 16,341.42. Similarly, the S&P 500 witnessed a rise of 0.78% to 5,218.70.
Market Performance
Investor sentiment was robust, with consumer discretionary stocks surging by 1.3%, providing a glimpse of bullish activity in the equity markets.
Conversely, healthcare shares experienced a slight downturn, slipping by 0.4% during the trading session.
Federal Reserve Decision
The Federal Reserve’s decision to keep rates steady between 5.25% and 5.5% came as no surprise to market participants, cementing expectations of potential easing of monetary policy in the upcoming months.
Winners and Losers
ETAO International Co., Ltd. saw its shares surge by a staggering 87% to $0.2670 following the announcement of a reverse stock split, exemplifying a dramatic market reaction.
In contrast, Aquestive Therapeutics, Inc. witnessed a decline of 16% to $4.47 after pricing its $75 million public offering at $4.50 per share, marking a challenging day for the pharmaceutical firm.
Commodity and Global Markets
While oil prices dipped by 2% to $81.84, gold edged up by 1.3% to $2,187.90, showcasing a mixed performance in the commodity market.
Across the Euro zone, markets displayed a varied picture, with Italy witnessing a decline in industrial production, contrasting with Germany’s drop in producer prices. The UK experienced a rise in producer prices alongside a slight ease in the inflation rate, reflecting economic nuances within the region.
Asian Markets Outlook
Asian markets closed on a positive note, with notable gains in Hong Kong, China, and India, while the People’s Bank of China maintained benchmark lending rates, underlining stability in the regional financial landscape.
Economic Indicators
Recent data showed a 1.6% decline in U.S. mortgage applications, coupled with a decrease in crude oil inventories by 1.952 million barrels, challenging prevalent market estimates.
