US markets glimmer in green ahead of FOMC outcome; all eyes on Powell's comments

Wall Street indices are coming off of a strong fall in the last session.

Wall Street indices shrugged off jitters and inched higher in opening trade on March 19 while investors await the Federal Reserve's monetary policy decision and Chair Jerome Powell's outlook on rate cuts and growth forecasts.

The Fed's Open Market Committee (FOMC) is slated to announced its monetary policy decision later today.

The Federal Open Market Committee (FOMC) is set to announce its decision later today, with markets widely expecting the central bank to hold rates steady at 4.25–4.50 percent. However, investor focus will be on whether the Fed maintains its projection for two rate cuts this year, as well as Powell’s comments on economic conditions amid escalating trade tensions.

At the opening bell, the S&P 500 climbed 0.6 percent, while the Nasdaq Composite advanced 1 percent. The Dow Jones Industrial Average gained 212 points, or 0.5 percent.

While the Fed’s decision aligns with its cautious stance, the spotlight will be on the dot plot, which outlines policymakers' rate expectations. The December projections indicated fewer rate cuts than anticipated for 2025. Any revisions to this outlook could significantly influence market sentiment.

The market rally follows a volatile Tuesday session, where the recent sell-off resurfaced after two days of gains. The Dow fell 0.6 percent, the S&P 500 declined 1 percent, and the Nasdaq dropped 1.7 percent. The broad-market index ended the day 8.6 percent below its February record high, while the Nasdaq remains in correction territory, down over 10 percent from its recent peak.

Investors continue to grapple with soft economic data and uncertainty surrounding President Donald Trump’s trade policies, which have contributed to market turbulence in recent weeks. As Powell takes centre stage, traders will closely monitor his remarks on inflation, growth, and the Fed’s future policy trajectory.

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