Japan’s Nikkei 225 rose over 1% on Wednesday, reaching a new record high amid mixed regional trading as investors awaited the Federal Reserve’s interest rate decision. Markets widely expect a second consecutive 25 basis point cut, bringing the federal funds rate to 3.75%–4.00%.
Investor Louis Navellier noted that if Fed Chair Jerome Powell delivers a dovish tone, expectations for further rate cuts could grow, fueling additional market momentum.
The federal funds rate, set by the Federal Open Market Committee, determines the overnight lending rate between banks and influences borrowing costs for mortgages, credit cards, and other loans.
Overnight in the U.S., major indexes closed higher. The S&P 500 rose 0.23% to 6,890.89, briefly topping the 6,900 mark for the first time intraday. The Nasdaq Composite advanced 0.80% to 23,827.49, while the Dow Jones Industrial Average gained 161.78 points (0.34%) to 47,706.37.
All three benchmarks—S&P 500, Nasdaq, and Dow—notched new all-time intraday highs, signaling sustained optimism ahead of the Fed’s announcement.