US stocks were slightly higher on Wednesday, with the S&P 500 up 0.4%, the Nasdaq gaining about 0.6%, and the Dow Jones adding about 100 points, as traders awaited the Federal Reserve’s decision later in the day.
US stocks edge up as traders await Fed
This followed losses in the previous session, as investors remained cautious ahead of the central bank’s latest move. The Fed is widely expected to keep interest rates unchanged while providing fresh economic projections that will offer deeper insights into the economic outlook and its stance on inflation and growth. As such, market participants were keen to assess how the Fed plans to navigate the economic uncertainty, especially in light of ongoing tariff and trade issues.
Tech and consumer discretionary stocks outperform
Tech and consumer discretionary stocks were by far the top-performing sectors, continuing to show resilience despite broader market volatility. On the corporate front, Tesla shares surged about 3.5% after the company received its first official approval from California regulators for a potential robotaxi service, signaling a new step in its future growth and innovation efforts. Meanwhile, Nvidia gained 1.7%, recovering from a 3.4% drop the day before. The rebound came after the company’s CEO unveiled a new lineup of more powerful chips and related technology at the GTC conference, which was well-received by investors as a positive signal for Nvidia’s future in artificial intelligence and gaming.
Apple, Microsoft, and Alphabet also gain
Other megacap stocks were mixed, with Apple (+1.1%), Microsoft (+0.4%), and Alphabet (+0.4%) posting modest gains, reflecting steady investor confidence in the tech giants. On the other hand, Amazon (-0.2%) and Meta (-0.2%) traded lower, with investors cautious about their near-term prospects amid concerns over regulatory scrutiny and slowing growth in certain business segments. Overall, the market’s focus remained firmly on the Fed’s upcoming decision, which could influence the trajectory of the economy and equity market performance in the coming months.
