Wall Street experienced a significant rally on Thursday, May 8, 2025, following the Federal Reserve's decision to hold interest rates steady. The Fed's announcement included a cautionary note regarding potential risks stemming from elevated inflation and challenges in the labor market.
The Dow Jones Industrial Average jumped by 284.97 points, or 0.70%, to reach 41,113.97. The S&P 500 also saw gains, increasing by 24.37 points, or 0.43%, to close at 5,631.28. Meanwhile, the Nasdaq Composite advanced 48.50 points, or 0.27%, to 17,738.16.
US-China Trade Discussions
Investors are closely watching upcoming trade discussions between the United States and China in Switzerland. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are scheduled to meet with Chinese officials, potentially leading to a de-escalation of trade tensions. However, declining oil prices, down over $1 a barrel, reflect doubts about a major breakthrough in these talks.
The dollar index rose 0.42% to 99.92, while spot gold fell 1.8% to $3,367.70 an ounce. These market movements reflect investor sentiment amid ongoing economic and trade developments.