S&P 500 Rises as Boeing Soars, Apple and Google Face EU Scrutiny Ahead of Fed Decision

Wall Street Rises as Traders Await Fed Decision

U.S. stocks climbed Wednesday as investors positioned themselves ahead of the Federal Reserve’s policy announcement. The S&P 500 gained 0.7%, the Nasdaq Composite rose 1%, and the Dow Jones Industrial Average advanced 236 points, or 0.6%. Traders are focused on whether the central bank will maintain its outlook for two rate cuts this year and any signals from Fed Chair Jerome Powell regarding economic conditions and inflation progress.

Will the Fed Maintain Its Rate Cut Outlook?

The Fed is expected to keep interest rates steady in the 4.25%-4.50% range, with markets closely watching Powell’s comments for clarity on future rate cuts. Analysts anticipate Powell will reiterate confidence in inflation control but remain cautious about near-term rate adjustments.

Michael Green of Simplify Asset Management noted that while cuts aren’t likely at this meeting, the Fed will aim to reduce uncertainty about future monetary policy. Investors will also analyze the Fed’s updated economic projections, including GDP growth, unemployment, and inflation expectations.

Tech Stocks React to EU Antitrust Moves

Tech stocks were in focus after European regulators took action against Google and Apple on antitrust charges. Meanwhile, the Trump administration’s tariff threats against the EU added another layer of uncertainty for the sector. The broader technology sector gained 0.77%, led by strong performances from major companies despite ongoing regulatory concerns.

Boeing, Williams-Sonoma, and Turkey ETF See Volatility

Boeing shares surged 6% following optimistic comments from CFO Brian West, who indicated that cash flow concerns were easing and factory operations were improving. In contrast, Williams-Sonoma tumbled 11% after issuing cautious revenue guidance and disclosing a $49 million accounting adjustment.

Meanwhile, the iShares MSCI Turkey ETF (TUR) plunged 11.4% after the arrest of Turkish opposition leader Ekrem Imamoglu, marking its worst performance since December 2021.

XRP Surges as SEC Drops Appeal Against Ripple

XRP spiked nearly 14% to $2.57 after Ripple CEO Brad Garlinghouse announced that the SEC is dropping its appeal in the long-running lawsuit against the company. The decision marks a significant win for Ripple, which has been embroiled in a legal battle over whether XRP is a security. The move follows the SEC’s broader retreat from aggressive crypto enforcement, including ending cases against Coinbase and Robinhood’s crypto unit. XRP has gained 22% this year and remains a key beneficiary of the post-election crypto rally.

Market Outlook

Traders will closely scrutinize Powell’s post-meeting remarks for any shifts in the Fed’s stance on rate cuts. Additionally, geopolitical tensions, trade policy developments, and corporate earnings will play a critical role in shaping market sentiment. The Fed’s economic projections, combined with upcoming inflation and employment data, will provide key signals for the next market move.

More Information in our Economic Calendar.