US stocks surged in choppy trading after the Federal Reserve held interest rates steady, with chipmaker stocks jumping following reports that the Trump administration plans to rescind AI chip restrictions.
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00:00U.S. stocks advanced on Wednesday in choppy trading after the Federal Reserve kept U.S. interest rates unchanged in a move that was widely expected by market participants.
00:11Late in the session, stocks rallied as chipmakers jumped after Bloomberg reported President Donald Trump's administration plans to re-sign artificial intelligence chip curbs put in place during the Biden administration.
00:24Earlier, the Fed kept rates steady, with the central bank saying the risks of both higher inflation and unemployment had risen, further clouding the economic outlook as the Fed grapples with the impact of Trump's tariff policies.
00:41After a brief move lower-flowing the statement, stocks reversed costs, trading remained volatile through the session.
00:47I think the market didn't like, he didn't say stagflation, but he certainly hinted at it.
00:55He said concerned about higher prices and slower growth, and that is the definition of stagflation and possibly higher unemployment.
01:05So in these few minutes, we have seen the market sell off, not dramatically, but we were up in the S&P, and now we're negative.
01:13So clearly the market did not like, no one likes to hear the word stagflation or any hint of it.
01:21It's not a good situation in the economy when we have high inflation and slow growth.
01:26The S&P 500 gained 24.37 points or 0.43% to end at 5,631.28 points, while the Nasdaq Composite gained 48.50 points or 0.27% to 17,738.16.
01:45The Dow Jones Industrial Average rose 284.97 points or 0.70% to 41,113.97.