20 March | S&P 500

S&P 500 Index rallies as Fed keeps key rates on hold

S&P 500 Index rallies as Fed keeps key rates on hold

US stocks rallied sharply this week after the Federal Reserve decided to keep interest rates steady in March. The S&P 500 Index was among the top daily gainers. Bloomberg indicates that Jerome Powell, who heads the American central bank, managed to ease investor concerns about the adverse effects of Donald Trump's trade tariffs on economic health.

In their statements, Fed officials also announced plans to shrink the regulator’s balance sheet on Treasuries from $25 billion to $5 billion starting from April 2025. 

The central bank is now taking active steps to slow the pace of its Treasury redemption, Jamie Cox from Harris Financial Group noted. This could have a dampening effect on inflation by the summer. Cox predicts the Fed may then be in a position to ease its monetary policy.

The S&P 500 Index gained 1.1% on Thursday. Meanwhile, the 10-year Treasury yield fell four bps to 4.24%.

Anton Volkov MarketCheese
Period: 14.07.2025 Expectation: 945 pips
Delayed tariff implementation may push silver to $35.650
Yesterday at 11:10 AM 39
Period: 18.07.2025 Expectation: 1400 pips
Weak dollar may drive S&P 500 to 6,300
Yesterday at 07:34 AM 39
Brent sell
Period: 11.07.2025 Expectation: 400 pips
Brent falls ahead of OPEC+ decisions
04 July 2025 63
Period: 18.07.2025 Expectation: 900 pips
AUDCAD is likely to keep pulling back from its monthly high
04 July 2025 48
Period: 10.07.2025 Expectation: 1200 pips
Selling USDJPY during rebound with 142.430 target
03 July 2025 64
Period: 11.07.2025 Expectation: 220 pips
Heatwaves across Europe and US support gas price recovery from recent lows
03 July 2025 245
Go to forecasts