Business · Markets · 1 hr ago

US stocks rise as Fed holds interest rates steady

US stocks rise as Fed holds interest rates steady

US stocks closed slightly higher on Wednesday after the Federal Reserve kept its key interest rate unchanged.

The decision was widely expected, and the major indexes moved only modestly.

The Fed left rates steady but said inflation remains elevated and upgraded its assessment of the economy.

Investors raised their expectations of a rate hike in December, while awaiting economic data for further clues.

Chip shares recovered as AI demand remained in focus, helped by strong quarterly results from South Korean chipmaker SK Hynix.

Investors turned to results from Microsoft and Alphabet, released after the market closed; Microsoft shares rose initially, while Alphabet shares fell.

Upcoming inflation and growth data may shape rate expectations, including a US inflation report and an estimate of third-quarter economic growth.

8 sources

Related

What people are saying

Ryan DetrickChief market strategist at Carson Group
The Fed didn't throw any curveballs
via Economic Times
Likely the pressure will be to do one more hike in December, as inflation is still potentially an issue
via Mint
Kevin WarshFederal Reserve chair
The central bank had made clear its willingness and readiness to act
via Economic Times