Stock Market Update Wednesday May 7, 2025

Stock Market Update Wednesday May 7, 2025 Stocks closed higher on Wednesday following the Federal Reserve's decision to maintain steady interest rates, aligning with market expectations, while noting balanced risks to economic growth and inflation. Equities experienced late-day volatility, though it remained moderate, with the full market reaction expected Thursday as investors digest the news overnight. The S&P 500 ($SPX) gained 0.4%, the Nasdaq 100 ($QQQ) rose 0.4%, and the Russell 2000 ($IWM) edged up 0.3%. Bond yields dipped slightly post-Fed statement, with the 10-year Treasury yield settling at 4.28%. Gold and oil prices saw minor retreats. Alphabet ($GOOGL) declined sharply, falling 7.3% to $151.38, driven by speculation that Apple's AI advancements could disrupt traditional search engines. Conversely, Nvidia ($NVDA) surged 3.1% to $117.06 in late trading, fueled by reports of potential easing of semiconductor restrictions, which may have skewed perceptions of the market's Fed response.