Stocks, Dollar Rise Ahead Of Fed Meeting, Boeing Eyes Best Day In Nearly 2 Years: What's Driving Markets Wednesday?

Risk sentiment shows signs of recovery by midday trading in New York, as investors anxiously await the Federal Open Market Committee (FOMC) meeting at 2:00 p.m., hoping that Federal Reserve Chair Jerome Powell will offer reassuring remarks on the strength of the economy.

The Federal Reserve is widely expected to keep the fed funds rate unchanged between 4.25% and 4.50% for the second consecutive meeting, likely emphasizing the need for further clarity on inflation trends before considering any easing of monetary policy.

Policymakers will also release fresh economic projections, including estimates for real GDP growth, labor market conditions, inflation, and interest rates — with the latter reflected in the dot plot.

In December, the Fed had penciled in two rate cuts for 2025, a notable shift from the four cuts projected in September. Financial markets currently fully price in three cuts by December.

Consumer discretionary and technology stocks led gains, helping the Nasdaq 100 slightly outperform its peers.

Nvidia Corp. (NASDAQ:NVDA) rose 1.8%, snapping a two-day losing streak, following CEO Jensen Huang's keynote speech the previous day.

The U.S. dollar index — tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP) — climbed 0.5%, poised for its best session this month as investors pushed back concerns over an imminent recession.

Gold once again hit all-time highs, reaching $3,045 intraday, while oil prices edged up 0.6%. President Donald Trump stated that Ukraine-Russia peace talks are “on track” following a call with Volodymyr Zelenskyy on Wednesday.

Meanwhile, Bitcoin (CRYPTO: BTC) surged nearly 3% to $85,000.

Wednesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.8% to $565.39.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.7% to $419.49.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 1% to $479.63.
• The iShares Russell 2000 ETF (NYSE:IWM) soared 0.9% to $205.02
• The Technology Select Sector SPDR Fund (NYSE:XLK) outperformed, up 1.2%; the Consumer Staples Select Sector SPDR Fund (NYSE:XLP) lagged, down 0.3%.

Wednesday’s Stock Movers

• Shares of Intel Corp. (NASDAQ:INTC) dropped more than 5%, ending a five-day streak of gains, following a 25% surge since Lip-Bu Tan took over as CEO. The decline may reflect investors locking in profits ahead of the Federal Reserve's policy announcement.
• Williams-Sonoma Inc. (NYSE:WSM) fell 6.9% in reaction to quarterly earnings.
• The Boeing Company (NYSE:BA) surged more than 6%, eyeing the strongest session since July 2023, after CFO Brian West outlined plans to boost aircraft deliveries and reduce first-quarter cash outflows, supported by improved factory efficiency and inventory reductions.

Read Now:

• Analysts See Upside For 95% Of S&P 500 Stocks: How Nvidia, Tesla Stack Up

Image: Shutterstock