Stock Market Today: Stocks Enjoy a Fed Day Relief Rally
The question now is whether Jerome Powell and other policymakers can get the balance right given all the new noise.



Stocks opened higher and trended that way into the closing bell, as investors and traders enjoyed a relief rally on what was the most anticipated Fed Day since the last one. Technology and energy were among the top sectors, despite confirmation from monetary policymakers that economic uncertainty is a top concern.
During his post-meeting press conference, Federal Reserve Chair Jerome Powell acknowledged that new policies from President Donald Trump could have an impact on the economy but added that the central bank feels no rush to adjust its approach.
"We're at a place where we can cut or we can hold," Powell said. The Fed, as expected, left the federal funds rate target range unchanged at 4.25% to 4.50%. But the FOMC policy statement left little doubt that the big picture has grown cloudy.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Recent indicators suggest that economic activity has continued to expand at a solid pace," says the Federal Open Market Committee. Unemployment "has stabilized at a low level," suggesting "solid" labor market conditions. As for inflation, it "remains somewhat elevated."
And "uncertainty around the economic outlook has increased."
As ever, the FOMC will maintain attention "to the risks to both sides of its dual mandate," which is "to achieve maximum employment and inflation at the rate of 2 percent over the longer run."
The Fed's "dot plot" indicates members of the FOMC still see two rate cuts in 2025, both during the second half of the year.
The trajectory of the Fed's balance sheet was one of the many important questions investors, traders and speculators wanted answered this afternoon.
In another update to its statement, the FOMC said it will slow the pace of quantitative tightening in April. It will reduce the monthly redemption cap on Treasury securities from $25 billion to $5 billion but maintain the cap on agency debt and agency mortgage-backed securities at $35 billion.
After explaining its QT plan, the FOMC reiterated that it is "strongly committed to supporting maximum employment and returning inflation" to 2%.
We continue to follow the day's developments on our live Fed blog.
At the closing bell, the Dow Jones Industrial Average climbed 0.9% to 41,964, the S&P 500 added 1.1% to 5,675, and the Nasdaq Composite surged 1.4% to 17,750.
Google acquires Wiz
Alphabet (GOOGL, +2.0%) subsidiary Google announced on Tuesday that it will acquire cloud security company Wiz for $32 billion in cash.
According to Google, the "acquisition represents an investment by Google Cloud to accelerate two large and growing trends in the AI era: improved cloud security and the ability to use multiple clouds (multicloud)."
Susquehanna International Group analyst Shyam Patil said it positions Google Cloud "to join the mix of enterprises' multicloud approaches" and gives it "an additional selling point when going up against cloud competitors like AWS and Azure."
Patil also said the integration of Wiz "could potentially change the nature of GOOGL's relationships with close cybersecurity partners like Palo Alto Networks (PANW), which has its own cloud security offerings that compete directly with Wiz."
Patil rates GOOGL stock Positive (equivalent to Buy) with a 12-month target price of $225. Patil notes that "downside risk is $122."
The deal was announced the same day Oppenheimer analyst Chris Kotowski said there's "no visible sign of" a forecast dealmaking rebound in 2025, noting that announced M&A is up 2.4% year to date.
"Moreover," Kotowski writes, "we fear that the current uncertainty over tariffs, a fiscal 'detox' and the general upheaval of 80 years of trade and security arrangements is likely to cause a pause in M&A activity."
Nvidia gets its bounce
Nvidia (NVDA, +1.8%) saw the bounce on Fed Day that it didn't get from CEO Jensen Huang's keynote address at the GTC AI Conference.
Morgan Stanley Research analyst Joe Moore said Blackwell is off to an "incredible" start, with demand from the top four cloud service providers forecast to grow by more than two times year over year in 2025.
Moore notes that the keynote address is aimed at developers, not investors, but the strong Blackwell commentary, Huang's roadmap through 2027 and broader commentary all frame a positive investment picture.
Tesla finds a spark
Tesla (TSLA, +4.7%) got its own boost on Fed Day after powering down 4.8% on Monday and 5.3% on Tuesday.
Cantor Fitzgerald analyst Andres Sheppard upgraded the EV stock to Overweight (equivalent to Buy) from Neutral (equivalent to Hold), citing TSLA's 44% year-to-date decline through Tuesday on weaker sales and rising competition as well as concern about the impact of CEO Elon Musk's political work.
The analyst noted multiple potential catalysts for a rebound, including full self-driving technology in China and Europe this year, the launch of a robotaxi service in June and the introduction of a mass-market EV by the summer.
Sheppard maintained his 12-month price target at $425. TSLA closed at $235.86 on Wednesday.
Related content
- 4 Turnaround Stocks to Consider – and 2 More to Keep an Eye On
- Hot Upcoming IPOs to Watch
- Earnings Calendar and Analysis for This Week
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

David Dittman is the former managing editor and chief investment strategist of Utility Forecaster, which was named one of "10 investment newsletters to read besides Buffett's" in 2015. A graduate of the University of California, San Diego, and the Villanova University School of Law, and a former stockbroker, David has been working in financial media for more than 20 years.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Retirement Health Care Costs Are On the Rise: What You Need to Know
A 65-year-old retiree will face significantly higher lifetime health care costs than they would have a year ago, even with Medicare. Here are the surprising totals.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Three Ways to Find Deals in Your Investments This Year
Looking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
How to Invest for a Fall Interest Rate Cut by the Fed
A lot can happen between now and then, but the probability the Fed cuts interest rates before the end of the year is better than 85%.
-
You Don't Have to Be Wealthy to Need a Wealth Manager
Navigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.
-
Despite Tariffs, These Investment Experts Are Bullish on European Equities
European equities were one of the better-performing investments during the first half of 2025. They could be a good long-term prospect for U.S. investors needing to diversify, according to these investment managers.
-
Stocks Are Up and Down on Fed Day: Stock Market Today
In another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
What Federal Interest Rates Mean for Your Grocery Bill
The relationship between grocery prices and the Federal Reserve has plenty of back-and-forth. Understand how they interplay.
-
5 Undervalued Stocks to Buy Now
There are plenty of high-quality undervalued stocks to buy right now, you just need to know where to look. Here, we highlight five of our top picks.