U.S. Stock Market Surges as Fed Holds Interest Rate Steady, Anticipates Cuts

U.S. stocks rallied on Wednesday after the Federal Reserve kept interest rates unchanged and indicated potential cuts by year's end. The Nasdaq led gains with tech stocks, and gold turned positive. International markets responded with mixed reactions, while cryptocurrencies rose due to reduced economic forecasts.

On Wednesday, U.S. stocks experienced an upward momentum after the Federal Reserve decided to leave interest rates unchanged, suggesting potential rate cuts by end of the year. The central bank also increased inflation expectations and adjusted its economic outlook amid ongoing tariff tensions.

All major U.S. stock indexes gained, with technology stocks particularly boosting the Nasdaq. "The Fed maintained a 'wait and see' strategy due to concerns about tariffs' impact on growth and inflation," explained Matthias Scheiber from Allspring Global Investments.

Meanwhile, international geopolitical developments, such as Erdogan's political rival's arrest, influenced global markets. Despite mixed reactions in global markets, cryptocurrencies and commodities like gold and crude oil gained ground following the Fed's revised economic projections.

(With inputs from agencies.)