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Market Update Following Federal Reserve’s Latest Meeting

Major U.S. stock indices experienced gains as the Federal Reserve concluded its second policy meeting of the year.

In a widely anticipated decision, the Fed opted to keep interest rates unchanged. The central bank’s updated “dot plot” indicated expectations for two rate cuts later in 2025, yet officials voiced concerns about rising inflation and slower economic growth compared to prior forecasts.

The S&P 500 saw an increase of 1.1% during midweek trading. The Dow Jones Industrial Average climbed 0.9%, while the Nasdaq composite rose by 1.4% after the Fed’s announcement.

Boeing (BA) shares rose significantly by 6.8%, marking the strongest performance in the S&P 500 for the day. This surge was driven by Japan Airlines placing an order for 17 Boeing 737-8 aircraft. Additionally, Boeing’s CFO, Brian West, minimized the potential negative effects of U.S. tariffs on the company’s operations, while analysts from Bank of America predicted an increase in deliveries for the month of March.

Super Micro Computer (SMCI) reported the release of new systems featuring the Blackwell Ultra platform, the latest in Nvidia’s AI chip technology. These new systems are tailored for complex AI tasks, including model training and visual representation. The reaction was positive, with Supermicro’s stock gaining 5.8% on Wednesday, recovering some of the losses it had sustained in previous sessions.

Shares of Caesars Entertainment (CZR) surged by 5.7% after the casino and resort operator announced the addition of two independent members to its board of directors with ties to Icahn Enterprises (IEP). Carl Icahn, the founder of the investment firm and a significant shareholder, previously stated his intention to avoid interfering with Caesars’ operations. However, after the board appointments, he hinted at exploring strategic options for the company’s digital segment.

In contrast, Intel (INTC) saw its stock decline by 6.9%, marking the day’s largest drop in the S&P 500. This downturn came after a five-day rally fueled by the recent appointment of semiconductor veteran Lip-Bu Tan as its new CEO. The incoming leader is reportedly considering a major restructuring plan that includes cutting middle management, altering manufacturing practices, and revising the company’s AI strategy.

Progressive (PGR) experienced a decrease of 3.5% following its February results announcement. Even though the insurer noted significant annual gains in both premiums and net income, it also reported a substantial pretax net realized loss on securities amounting to $110 million, a stark decline from an $80 million gain recorded in February of the previous year.

Gilead Sciences (GILD) faced a 2.5% decline in its stock values after news emerged that the Department of Health and Human Services is considering significant cuts to federal funding for HIV prevention programs. Treatments for HIV, including preventive medications prescribed to at-risk individuals, made up more than half of Gilead’s total revenue in the last year.

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