Auto stocks, led by Tesla and GM, surged after Fed maintains forecast for two rate cuts

From Nasdaq: 2025-03-20 11:12:00

Stocks surged midweek after the FOMC maintained its forecast for two rate cuts this year. The S&P 500 and Nasdaq Composite both gained over 1% on Wednesday. The Fed cited uncertainties related to President Trump’s tariff plans and downgraded its US economic growth forecast to 1.7%.

The Fed also announced a reduction in the pace of its balance sheet drawdown, with a new monthly cap of $5 billion for treasuries. Consumer discretionary stocks led the rally, with Tesla gaining nearly 5% on Wednesday. Tesla plans to roll out unsupervised Full Self-Driving in Austin this June.

General Motors saw its stock rise over 2% after partnering with Nvidia for artificial intelligence services. GM holds a Zacks Rank #2 (Buy) and has had positive earnings estimate revisions. The stock is down only about 6% year-to-date and has favorable Zacks Style Scores.

Zacks has named a top semiconductor stock poised to capitalize on the growing demand for AI, machine learning, and IoT. This stock is positioned for significant growth in the semiconductor industry, projected to reach $803 billion by 2028. Investors can access the stock recommendation for free through Zacks.



Read more at Nasdaq: Auto Stocks Surge Following Fed Meeting; Tesla, GM Lead Rally