US stocks opened at fresh records on Thursday, following Wednesday’s Fed meeting where interest rates were held steady for the fifth consecutive meeting. Investors reacted positively to the news, pushing stocks higher as the central bank reiterated its outlook for three interest rate cuts this year.
Immediately after the decision, the odds of a June rate cut jumped from 55% to 70%, before settling at around 62% early Thursday. Fed Chair Jerome Powell emphasized the need for more data to ensure inflation is moving towards the target of 2%.
Despite February’s higher-than-expected inflation reading, the Fed remains optimistic about the balance between consumer prices and employment. Bank of America strategists noted that the Fed has embraced a positive supply-side narrative, projecting stronger growth without significant declines in unemployment or firmer inflation.
In addition to the market reaction to the Fed’s decision, Reddit is set to begin trading on Thursday on the New York Stock Exchange under the ticker RDDT. The social media platform priced its IPO at $34 per share, valuing the company at around $6.4 billion. Reddit had previously announced that it would allocate 8% of shares to certain users and moderators.
As US indexes opened on Thursday, investors are keeping an eye on the market’s performance and the debut of Reddit’s stock. Stay tuned for updates on commodities, bonds, and crypto as the day progresses.
