FX.co ★ US Stocks Hold Gains After Fed

U.S. stocks experienced a modest increase following the Federal Reserve's decision to keep its interest rates unchanged and its forecast of two cuts within the year. The S&P 500, Dow Jones, and Nasdaq 100 each rose by 0.3%. The Fed's Summary of Economic Projections continues to anticipate a 50 basis point reduction in the federal funds rate this year. However, it has decreased its expectations for future rate cuts while revising upward its forecasts for unemployment and inflation, and lowering its growth projections. These updates came despite recent signs of disinflation, reflecting previous Fed warnings that uncertainty in economic policies can impede activity and potentially drive prices up. Concurrently, President Trump persisted with a firm stance on Iran, although he mentioned that Tehran had requested negotiations. Stock gains were widespread, particularly among semiconductor manufacturers, as Texas Instruments outlined a $60 billion investment plan for domestic facilities, and Marvell adjusted its outlook positively for the data center sector. Nonetheless, Visa and Mastercard underperformed following the passage of the Stablecoins Act by Congress.