Federal Reserve's Rate Decisions and Wall Street's Roller Coaster

Wall Street futures saw an uptick as investors gained reassurance from the Federal Reserve's plan for interest rate cuts, juxtaposed against trade policy uncertainties. The Fed maintained current interest rates, forecasting two 25 basis point cuts by year-end amid revised projections for slower growth and higher inflation.

Future projections on Wall Street improved on Thursday, buoyed by the Federal Reserve's indication of upcoming interest rate reductions despite ongoing uncertainties from U.S. trade policies.

The Federal Reserve, maintaining current interest rates on Wednesday, confirmed expectations for two 25 basis point reductions by year-end. This announcement comes with a revised economic forecast, suggesting slightly reduced growth and heightened inflation, alongside a modest increase in unemployment by 2025.

Major stock indexes registered gains in previous trading sessions. The S&P 500 rose 1%, the Nasdaq advanced 1.4%, and the Dow increased by 1%. Notably, the CBOE volatility index marked a near one-month low, reflecting investor confidence.

(With inputs from agencies.)