Fed's 2025 Meeting: Stocks Watch as Rate Cuts Hang in Balance

The Federal Reserve's first 2025 meeting will test U.S. stock market resilience as interest rate cuts are anticipated. Recent data shows moderated inflation, aiding a stock rebound. While there's a pause in rate changes, the Fed's approach and potential tariff implications are closely watched by investors.

The first Federal Reserve meeting of 2025 is set to challenge the recovery of U.S. stock markets. Observers are keenly awaiting any signs of equity-friendly interest rate reductions in the coming months, as previously anticipated by investors.

Recent data indicating moderated inflation has buoyed Wall Street, resulting in a stock rebound that saw the S&P 500 reach a record high. Despite expectations of a pause in the Fed's rate-easing cycle, investors are interested in indicators for potential future cuts, according to Angelo Kourkafas of Edward Jones.

Adding to the market's dynamic, President Trump's recent activities in AI investment rally tech stocks, while his tariff stance continues to cause unease. Upcoming earnings from major tech companies could significantly affect market directions in the week following the Fed meeting.

(With inputs from agencies.)