Fed's Rate Standstill: Dollar Stirs While Stocks Stall

Global stocks halted a five-day rally as the U.S. Federal Reserve maintained interest rates but signaled ongoing inflation concerns. Investors now await Chair Jerome Powell's insights on future rate actions. U.S. stocks were largely unmoved, while fluctuations in the dollar and commodities captured market attention.

Global stock markets saw a pause in their upward trajectory as investors responded to the Federal Reserve's decision to keep interest rates steady amidst persistent inflation concerns and robust economic growth.

The Fed's policy statement offered few hints on future rate cuts, directing market focus toward upcoming remarks from Chair Jerome Powell, whose tenure concludes in May. Notably, U.S. stock indices showed minimal reaction, with the S&P 500 experiencing minor losses after surpassing the 7,000 mark for the first time before key earnings reports from major tech firms.

Meanwhile, the dollar made notable gains, recovering from its recent dip following President Trump's comments on its performance. This currency fluctuation, coupled with commodity price surges, underscored prevailing market dynamics ahead of forthcoming economic policy shifts.

(With inputs from agencies.)