Traders Are Waiting to Hear if The Fed Will Change Its Rate-Cut Outlook – US Market Wrap

Wall Street traders bracing for Wednesday’s Federal Reserve decision sent stocks to new all-time highs, boosted by gains in a few major technology companies.

Equities recovered after a rebound in the “Magnificent Seven” cohort of tech megacaps, which Bank of America dubbed the “most-crowded trade”. Nvidia rose on expectations that its new chips would fuel a rally that has already added $1 trillion to the company’s value this year. Bonds also rose following a rout in which traders postponed rate cuts.

The S&P 500 rose to around 5,180, despite volume being significantly lower than the previous month’s average. Treasuries rose, with a $13 billion sale of 20-year bonds meeting strong demand. The yen fell as the Bank of Japan declined to signal any future hikes after ending the previous negative interest rate regime.