Fed's Rate Decisions Spark Stock Surge as Global Markets React

U.S. stocks rose following the Federal Reserve's decision to leave interest rates unchanged, with hints of future cuts. Global markets showed mixed reactions, with European stocks rising and emerging markets falling. Gold prices hit a record high, while cryptocurrencies and U.S. Treasury yields also saw movement.

U.S. stocks experienced a boost on Wednesday after the Federal Reserve left its key interest rate unchanged while hinting at future rate cuts. As a result, gold prices hit record highs and U.S. Treasury yields adjusted, following signs of a softened economic outlook amidst inflationary pressures due to tariff policies.

This decision ignited upward momentum across all three major U.S. stock indexes, with technology-heavy stocks propelling the Nasdaq upward by 1.4%. "The Fed's 'wait and see' approach reflects tariff concerns and their potential impact on both growth and inflation," stated Matthias Scheiber of Allspring Global Investments.

European stocks continued a positive run, logging their fourth consecutive gain as investors looked to the Fed's guidance. Meanwhile, varied global market responses saw mixed results in Asia and emerging markets. Cryptocurrencies rallied, with Bitcoin and Ethereum posting gains in tandem with adjustments to the Fed's economic stance.

(With inputs from agencies.)