US Stock Market Today: S&P 500, Dow Jones Rise Ahead Of Fed Decision; Nasdaq Recovers From Tech Rout

💡 US stock market indices rallied ahead of the Federal Reserve's interest rate decision, with the S&P 500 and Dow Jones leading the charge.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs 'greater confidence' that inflation is sustainably declining before it will consider easing policy.

The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

Market Reaction

The S&P 500 and Dow Jones surged to new highs, with the S&P 500 rising 1.2% to 4,190. The Dow Jones added 440 points, or 1.3%, to 34,600. The Nasdaq, however, lagged behind, gaining only 0.5% to 14,500.

Tech Stocks Recover

The Nasdaq's recovery was led by tech stocks, which have been under pressure in recent weeks. $NVDA rose 3.5% to $640, while $AAPL added 2.5% to $180. The tech-heavy Invesco QQQ ETF ($QQQ) gained 1.5% to $390.

What It Means for Investors