S&P 500 Bulls Return Despite Stiff Powell at Hawkish Fed Meeting

U.S. equity indices, with S&P 500 up by 0.43% end the day in the green after volatile swings driven by central bank messaging and semiconductor headlines. Stocks Recover After Choppy Session After a turbulent trading day marked by conflicting investor sentiment around Federal Reserve policy and trade developments, U.S. stock markets managed to end in positive territory. Early optimism surrounding the Fed’s rate announcement gave way to caution during Fed Chair Jerome Powell’s press conference, where he emphasized heightened economic uncertainty and reiterated a data-driven policy stance. This tempered initial market enthusiasm, causing a mid-session dip. Semiconductor Rally Powers Late-Day Gains Just as markets appeared to falter, news broke that President Donald Trump may consider lifting global restrictions on chip exports. This announcement sharply boosted sentiment in the tech sector, particularly among semiconductor stocks, which led a broader market rebound in the final hours of trading. The news reignited investor risk appetite, helping the S&P 500 close at 5,631 points. S&P 500 Chart Daily – Buyers Face the 100 SMA From a technical standpoint, the index remains in a tug-of-war. While it closed strong, it continues to face resistance from the 100-day simple moving average (SMA). A clear break above this level, along with the 50-day SMA, would likely confirm a return to a bullish trend. Fed Stays on Hold, Market Digests Hawkish Nuance The Federal Reserve held interest rates steady, as expected, but the tone from Powell suggested elevated risks to both inflation and employment. His repeated emphasis on uncertainty and the Fed’s patient approach dampened hopes for a June rate cut, with markets now assigning a lower probability to near-term easing. Despite the hawkish overtones, Powell offered a generally positive view of the U.S. economy, which may have reassured some investors. He noted that the economy remains resilient and that inflation, while still somewhat elevated, has shown signs of moderation in specific areas like housing and services. Stock Market Recovers After Early Week Losses Despite today’s gains, caution remains as investors digest Fed signals and brace for upcoming data on inflation and trade disruptions. Market sentiment was buoyed by the Fed’s patient tone, though underlying macro risks remain elevated, keeping overall positioning cautious. Dollar Strengthens Amid Shifting Rate Expectations In the wake of the Fed’s statement and Powell’s comments, the U.S. dollar appreciated sharply, gaining nearly 1 cent overall. This move reflects shifting expectations in the bond market, where traders are scaling back bets on imminent policy easing. The firmer dollar signals a market increasingly aligned with the Fed’s caution, rather than prematurely pricing in aggressive cuts. Fed Leaves Rates Steady, Flags New Risks Powell’s Statement: Tariffs in Focus, No Rush to Act Powell Q&A: Elevated Uncertainty, No Clear Path Yet Conclusion : Markets saw modest relief as the Fed struck a cautious, measured tone while keeping interest rates unchanged. However, Powell’s repeated emphasis on uncertainty—especially around tariffs and inflation—suggests the central bank remains firmly in wait-and-see mode. While today’s equity gains reflect a temporary reprieve, traders and investors will likely remain on edge as future inflation prints, trade developments, and earnings guidance shape the Fed’s next move. S&P 500 Live Chart