Fed's Next Move: U.S. Market Awaits Interest Rate Signal

The upcoming Federal Reserve meeting is crucial for the U.S. stock market as investors anticipate potential interest rate cuts. Trump's tariffs continue to impact policy decisions amid economic contraction and market fluctuations, with the Fed likely holding rates steady while future cuts remain possible. Corporate earnings surpass expectations.

In a pivotal moment for the U.S. stock market, investors look ahead to the Federal Reserve meeting this week, eager to see if interest rate cuts are on the horizon. The anticipation follows a strong market rebound after tariff-induced volatility.

While the Fed is expected to maintain current rates, investor sentiment suggests hopes for cuts by June. At the same time, Trump's tariffs pose a significant variable in the Fed's decision-making, balancing the risk of an economic slowdown with inflation worries.

The central bank's resolve to maintain independence is underscored as pressure mounts from the White House. Even as the S&P 500 shows recovery, the broader market remains below its past highs, buoyed by better-than-expected corporate earnings.

(With inputs from agencies.)