US stocks cheer Federal Reserve’s signal that tariffs won’t derail rate cuts
The stock market rally crescendoed on Wednesday after the Federal Reserve signaled its willingness to continue to cut rates even if tariffs being pursued by President Donald Trump keep inflation elevated.
The S&P 500 rose 1.1%, the Nasdaq 100 was up 1.3%, and the Russell 2000 led the way with a 1.6% gain.
Every S&P 500 sector ETF gained except for consumer staples, which was flat.
Beaten-up megacap tech companies, like Tesla, and heavily shorted stocks, like Riot Platforms, were among the biggest beneficiaries of the central bank’s messaging.
Other big gainers included Boeing, which was upgraded by Bank of America analysts who anticipate its deliveries will rise this month.
Roku also basked in love from the sell side, jumping after Guggenheim doubled down on its buy rating on the stock.
Shopify surged after the e-commerce platform announced it would be moving its listing to the Nasdaq.
And XRP posted a big gain as the SEC dropped its appeal against Ripple, the latest in the lighter regulatory touch being applied to the crypto industry.
On the other side of the spectrum, General Mills slumped after reporting underwhelming earnings and cutting its full-year forecast.
Intel’s recent white-hot rally also U-turned on Wednesday after a TSMC board member said rumors that the Taiwanese firm was looking to buy Intel’s foundry business were unfounded.
