S&P 500 Surges Over 1% Following Fed Decision: Investor Fear Eases, Greed Index Remains In 'Extreme Fear' Zone

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Extreme Fear” zone on Wednesday.

U.S. stocks settled higher on Wednesday, with the S&P 500 surging more than 1% during the session. The Federal Reserve maintained the federal funds rate unchanged at a range of 4.25% to 4.5%, with Chairman Jerome Powell reviving the term "transitory" to describe the potential inflationary effects of new tariffs.

While the Fed still projects two rate cuts in 2025 in its latest dot plot, projections now reflect lower growth and higher inflation, fueling renewed concerns about stagflation.

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