Optimism Grows in U.S. Stocks as Investors Await Fed's Next Move

Wall Street experienced a modest uptick on Wednesday as U.S. stocks slightly rose in a volatile session. The climb came after the Federal Reserve made the anticipated decision to keep interest rates unchanged. Investors are now looking out for any signals from Chair Jerome Powell that may indicate future rate cuts.

The Federal Reserve's statement highlighted a robust labor market and a somewhat elevated inflation rate, albeit without clarifying the timeline for potential rate reductions. Investor sentiment fluctuated following a stronger-than-anticipated economic growth reading, which nevertheless showed signs of underlying economic frailties.

Major indices saw moderate gains, with the Dow Jones, S&P 500, and Nasdaq Composite ticking upwards. Traders are placing around a 68% probability on a September rate reduction. With imminent earnings reports from Microsoft, Meta, Amazon, and Apple, market participants are attentive to influences shaping fiscal policy and economic performance.

(With inputs from agencies.)