Closing Recap 

U.S. stocks surged in the final minutes to finish higher, led by a tech rally on reports of revised AI chip curbs, overcoming earlier choppiness surrounding the Fed’s decision to hold rates steady; gold and oil fell, while Treasury yields eased. 

Key Takeaways 

• Late Day Tech Spike: Stocks, particularly tech and semis, jumped in the last 15 minutes on a Bloomberg report that the Trump administration plans to rescind Biden-era AI chip curbs. 
• Fed Holds Rates, Acknowledges Uncertainty: The FOMC kept interest rates unchanged as expected, noting higher inflation and unemployment risks but maintaining a “wait and see” approach, offering little new guidance. 
• Market Whipsaws on Fed: Equities initially pulled back on the Fed statement before recovering somewhat during Powell’s press conference, then surged on the chip news. 
• Tariff Hopes Linger: Modest overnight gains were supported by lingering optimism on trade de-escalation, though no concrete news emerged. 
• Sentiment Improves, Still Cautious: Fear & Greed Index moved to “Greed,” but sell-side ratings and jobs data highlight underlying concerns. 
• Gold & Oil Decline: Gold prices pulled back on profit-taking and easing immediate safe-haven demand, while oil fell on trade/demand worries and OPEC+ supply. 
• Yields Ease: Treasury yields declined across the curve. 

Market Overview

U.S. equity markets experienced a volatile session, ultimately closing with solid gains thanks to a dramatic spike in the final minutes of trading. The day was dominated by anticipation of the Federal Reserve’s policy decision and subsequent commentary. After a modest overnight bounce fueled by lingering hopes of tariff de-escalation, stocks spent much of the day waffling, paring early gains as investors awaited clarity from the Fed. There was no significant economic news to sway markets early on. 

Index	Up/Down	% Change	Last
DJ Industrials	284.97	0.007	41113
S&P 500	24.36	0.0043	5631
Nasdaq	48.5	0.0027	17738
Russell 2000	6.46	0.0033	1989

The FOMC, as widely expected, held interest rates steady, acknowledging both higher inflation and rising unemployment risks but offering no definitive shift in its “wait and see” policy stance. The initial market reaction to the statement was a pullback in equities. Fed Chair Powell’s press conference offered little further direct guidance, reiterating the Fed’s data-dependent approach and not specifying which side of the dual mandate (inflation vs. employment) was taking precedence. Stocks oscillated during his remarks.

However, the trading day concluded with a sharp upward surge, particularly in technology and semiconductor stocks. This was reportedly triggered by a late-breaking Bloomberg report suggesting the Trump Administration plans to rescind Biden-era AI chip export restrictions and develop new rules. This news, coming just before the bell, overshadowed the Fed’s cautious tone and pushed major averages to their highs of the day. Despite the positive close, sentiment indicators like the sell-side upgrade/downgrade ratio and concerning trends in jobs data (as highlighted by market observers) suggest underlying fragility.

Economic Calendar

The Federal Reserve’s policy decision and press conference were the main events on yesterday’s economic calendar. 

• FOMC Policy Decision: Federal Reserve held interest rates unchanged (as expected). Statement noted both higher inflation and higher unemployment risks. 
• Fed Chair Powell Press Conference: Reiterated a “wait and see” approach, offered no clear prioritization between inflation and labor market concerns, leaving door open to future rate cuts based on data. 

Commodities, Currencies, and Treasuries 

Gold prices pulled back after yesterday’s strong rally, with June futures settling down $30.90 (-0.90%) at $3,391.90 per ounce. The decline was attributed to profit-taking and some easing of immediate safe-haven demand as hopes for trade de-escalation lingered, although Barrick’s CEO expects continued support and volatility for gold. Crude oil prices fell again, with WTI settling down $1.02 (-1.73%) at $58.07/bbl. Persistent trade conflict headlines hitting demand expectations and the impact of OPEC+ increasing June quotas overshadowed any inventory drawdown benefits. Scotiabank projected a global supply surplus for the remainder of the year and into 2026. Treasury yields eased across the curve, with the 10-year yield falling about 4 basis points to 4.277%, reflecting perhaps a slight dovish interpretation of the Fed’s cautious stance or flight to safety earlier in the day. The U.S. dollar was mixed, weakening against the Euro but strengthening against the Yen.

Asset	Up/Down	Unit / % Change	Last
WTI Crude	-1.02	USD/bbl	58.07
Brent	-1.03	USD/bbl	61.12
Gold	-30.9	USD/oz	3391.9
EUR/USD	-0.0047	USD	1.1321
USD/JPY	1.27	JPY	143.69
10-Year Note	-0.041	%	0.04277

Looking Ahead 

The market’s reaction to the reported plans to revise AI chip export curbs will be a key focus for the technology sector and broader market sentiment tomorrow. While the Fed meeting is now in the rearview mirror, Chair Powell’s non-committal stance means upcoming economic data, particularly on inflation and employment, will be even more critical for shaping policy expectations. The Q1 earnings season continues, providing company-specific insights. Trade headlines, though somewhat quieter today outside the chip news, remain a potent potential catalyst for volatility.