Fed's Rate Decision Influences U.S. Stock Market Surge

The Federal Reserve held interest rates steady as it reviews the impact of Trump's tariff policies on economic growth. Despite anticipated rate cuts this year, uncertainty persists among policymakers. Reflecting market reactions, U.S. stocks rose, with the Dow, S&P 500, and Nasdaq all making gains.

The U.S. stock market surged on Wednesday after the Federal Reserve decided to maintain its benchmark interest rate. This move reflects ongoing assessments of the impact of President Donald Trump's tariff policies on economic growth.

The central bank kept its overnight interest rate unchanged within the 4.25%-4.50% range, suggesting upcoming interest rate cuts later this year. Persistent disagreements among policymakers highlight the uncertainty over handling the current economic conditions influenced by Trump's administration.

As traders anticipate future guidance from Fed Chair Jerome Powell, the financial markets responded positively. All major indices showed gains; the Dow Jones Industrial Average climbed 228 points, the S&P 500 increased by 46 points, and the Nasdaq Composite rose by 213 points. The market await further Fed commentary amid ongoing Congressional budget negotiations.

(With inputs from agencies.)