Japan's stock market hit a record high on Wednesday, as investors eagerly awaited the Federal Reserve's interest rate decision. The Nikkei 225 rose over 1%, reaching a new peak, while the broader market remained mixed. This surge comes amidst speculation that the Fed will cut interest rates by 25 basis points for the second consecutive month, bringing the federal funds rate to a range of 3.75%-4.00%.
Veteran investor Louis Navellier predicts that a dovish stance from Fed Chair Jerome Powell could further fuel market momentum and increase bets on future rate cuts. The federal funds rate, set by the Federal Open Market Committee, influences borrowing costs for various loans, even though it doesn't directly impact consumers. The Topix index remained stable, while South Korea's Kospi and Australia's S&P/ASX 200 saw modest gains and losses, respectively.
In the U.S., the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closed higher, with the S&P 500 surpassing the 6,900 mark for the first time during the day. The tech-heavy Nasdaq and the 30-stock Dow also reached new all-time intraday highs, showcasing the broad market's strength. These movements reflect investors' anticipation of the Fed's decision and its potential impact on global markets.
