[New York Stock Market Briefing] Expectations for Two Rate Cuts This Year... M7 Stocks Rebound Across the Board

S&P 500 Index Rises 1.1%

International Gold Price Sets New Record High

The New York stock market rebounded. This comes as the Federal Reserve (Fed) confirmed on the 19th (local time) its existing monetary policy trajectory of 'two rate cuts within the year' despite the impact of Donald Trump administration's tariff policies.

On this day, the Dow Jones Industrial Average closed at 41,964.63, up 383.32 points (0.92%) from the previous day. The Standard & Poor's (S&P) 500 index finished at 5,675.29, up 60.63 points (1.08%) from the previous session, while the tech-heavy Nasdaq index closed at 17,750.79, up 246.67 points (1.41%) from the previous session.

As expected, the Fed held its Federal Open Market Committee (FOMC) meeting today and kept the benchmark interest rate unchanged at 4.25-4.5%. Market investors noted that the Fed did not significantly raise its inflation forecast and maintained the number of rate cuts expected within the year.

In the revised economic outlook (SEP) released today, the Fed lowered its U.S. growth forecast for this year from 2.1% to 1.7% and raised its inflation forecast from 2.5% to 2.7%, but maintained its existing monetary policy outlook of two rate cuts within the year.

Fed Chairman Jerome Powell mentioned in today's press conference that if 'tariff inflation' proves to be temporary, it might be appropriate to simply look past it.

He dismissed concerns about stagflation (economic recession amid high prices), saying that while the probability of a recession has increased slightly, it remains low.

Investors appear to have interpreted these decisions and Chairman Powell's remarks as 'dovish' (favoring monetary easing).

Russell Price, chief economist at Ameriprise Financial, noted, "The inflation forecast rose slightly, and the growth forecast declined slightly," adding, "The market sees that the Fed has not added to the overall uncertainty currently pressuring the stock market."

International gold prices set another record high today, following yesterday's record, as markets were relieved by the Fed's decision.

According to Reuters, spot gold prices rose 0.6% from the previous session to $3,051.99 per ounce, setting a new record high.

Looking at individual stocks, Venture Global, the second-largest liquefied natural gas (LNG) producer in the U.S., saw its stock price jump 2.85% after obtaining federal Department of Energy approval for LNG exports.

Shares of major U.S. oil refiners ExxonMobil, Chevron, and Marathon all rose more than 1-2% following reports that President Donald Trump would meet with CEOs from about 10 U.S. oil companies at the White House to discuss restoring energy dominance and addressing surging power demand.

Boeing, the world's largest aerospace company, saw its stock price surge 6.84% after CFO Brian West stated that "cash flow and factory operations have improved this quarter."

MicroStrategy, known for holding the most Bitcoin, announced plans to issue 5 million preferred shares to raise funds for additional cryptocurrency purchases, after which its stock price rose 7.43%. Shares of Coinbase, the largest U.S. cryptocurrency exchange, jumped 4.75%, while trading platform Robinhood's shares surged 6.73%.

Intel, the traditional semiconductor company that recently appointed a new CEO and raised expectations for a turnaround, ended its five-day winning streak with a 6.94% decline.

The 'Magnificent 7' (M7) group of large tech stocks, which all closed lower the previous day, successfully rebounded today. Tesla in particular rose 4.68%, benefiting from passing the first hurdle to operate robotaxis in California.

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com