Wednesday’s trading session in the S&P 500 index futures was a testament to the market’s anticipation and reaction to the Federal Reserve’s interest-rate decision. Leading up to the 2pm EST announcement, the market hovered around the previous close, mirroring the uncertainty that typically precedes significant policy revelations.
As the Fed confirmed the Federal Funds rate would remain steady at the 5.25% – 5.50% target range, it was the central bank’s commitment to its forecast of three interest rate cuts within the year that ignited bullish momentum, as well as further cuts in 2025 and beyond. Jerome Powell’s press conference remarks, reinforcing that a robust job market wouldn’t impede potential rate reductions, further fueled optimism.
The rate news sparked an initial rally, only briefly interrupted by the bears testing support at Tuesday’s close. Once it was evident that support held firm, the bulls dominated the latter part of the session, steering the index futures to not only surpass the earlier pop, but also to secure a new all-time high and all-time closing high.
Ending the day nearly at its peak, the S&P 500 index futures marked a significant upswing of 45 handles, closing at 5286.75.
Broadcom Inc (NASDAQ: AVGO) led the charge among the index’s heavyweights, soaring $43.24 or 3.51% to conclude at $1276.00, buoyed by the broader rally and industry momentum.
That gain outpaced the overall index’s rise of 0.92% over threefold.
Conversely, on a day where the tide lifted nearly all boats, Eli Lilly And Co (NYSE: LLY) posted the smallest gain among the index’s top components, inching up just $0.08 or 0.01% to $772.86.
