Fed's decision to keep interest rates steady boosts market confidence, sparking rally

From Zacks Investment Research: 2025-03-20 11:14:18

The Federal Reserve’s decision to keep interest rates steady and maintain two-rate cuts projections lifted confidence in the U.S. stock market. This sparked a rally with S&P 500 gaining 1.1%, Dow Jones adding 0.9%, and Nasdaq jumping 1.4%. The recent decline in the market made stocks and ETFs cheaper, prompting investors to buy the dip. The Fed chair noted that inflation and recession risks are low. To capitalize on this, consider undervalued ETFs like Invesco Nasdaq Biotechnology, Invesco S&P 500 Enhanced Value, SPDR S&P Bank, SPDR S&P Oil & Gas Exploration & Production, and SPDR Portfolio S&P 500 High Dividend.



Read more at Zacks Investment Research: 5 Undervalued ETFs to Ride on Powell’s Market Optimism – March 20, 2025