Stocks Hit New Highs as Fed Holds Rates, Upgrades Growth Outlook

US stocks hit record highs after the Fed held interest rates unchanged and projected 3 rate cuts in 2024, in line with market expectations. The S&P 500, Dow, and Nasdaq all closed at record levels.

The Fed boosted its economic growth forecast for 2024 to 2.1% GDP growth, up from 1.4% previously. Cyclical sectors like consumer discretionary and industrials rallied on the improved outlook.

Intel stock rose after the White House announced $8.5 billion in CHIPS Act funding for the company to boost semiconductor manufacturing capacity.

Investor focus is on the Fed’s “dot plot” projection of interest rates, which could shift to show fewer 2024 rate cuts. Key areas to watch include small caps and highly leveraged companies.

Bitcoin fell 17% from its record high as futures funding costs rose ahead of next month’s bitcoin halving event. Crypto traders may be taking profits after overextending long positions.