In the stock market, prices went up today after the Federal Reserve said they plan to lower interest rates twice in 2025.
The Dow Jones futures went up by 0.31%, adding 130 points. The S&P 500 futures rose by 0.45%, and Nasdaq 100 futures increased by 0.58%.
The stock market has been going down since February but bounced back after the Fed’s announcement. The Dow increased by 0.9%, S&P 500 surged by 1%, and Nasdaq Composite went up by 1.4% but is still 10% lower than its peak.
The Fed believes inflation from tariffs will not last long. This belief is making investors feel positive about the economy.
This week, we will watch the jobless claims data, manufacturing survey from the Philadelphia Fed, and existing home sales. Companies like Darden Restaurants, Nike, FedEx, and Micron Technology will be releasing their earnings report on Thursday.
Vocabulary List:
- Federal Reserve /ˈfɛdərəl rɪˈzɜrv/ (noun): The central banking system of the United States responsible for setting monetary policy.
- Inflation /ɪnˈfleɪʃən/ (noun): The rate at which the general level of prices for goods and services is rising.
- Tariffs /ˈtærɪfz/ (noun): Taxes imposed by a government on imported goods.
- Surged /sɜrdʒd/ (verb): To increase suddenly and powerfully.
- Bounced back /baʊnst bæk/ (verb): To recover or return to a normal state after a decline.
- Economic /ˌiːkəˈnɒmɪk/ (adjective): Relating to the economy or finance.
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