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Takeaways
- The S&P 500 added 1.1% on Wednesday, March 19, 2025, as the Fed held interest rates steady, reaffirming plans for future cuts but expressing caution on inflation and growth.
- Boeing shares rose after an order was placed by Japan Airlines and comments from an executive regarding limited tariff effects, as well a positive delivery outlook.
- Following a string of gains, shares of Intel moved lower as the chipmaker's incoming CEO reportedly evaluated restructuring measures.
The Federal Reserve’s policy-making committee held its second meeting in 2025. Major U.S. stock indexes moved up.
Policymakers have maintained the benchmark interest rate at its current level, a move that was widely expected. The Fed’s recently released “dot graph” showed that officials are still expecting two interest-rate reductions this year. However the updated projections included forecasts of higher inflation and a slower economic growth as compared to previous predictions.
The S&P 500 advanced 1.1% in the midweek trading session. The Dow closed 0.9% higher following the Fed's announcement, while the Nasdaq was up 1.4%.
Shares of aerospace giant Boeing (BA) soared 6.8%, logging the S&P 500’s top performance on Wednesday. The move up was a response to several positive signals from the plane manufacturer. One of these was an announcement by Japan Airlines that they had ordered 17 Boeing 737-8s. Boeing’s Chief Financial Officer Brian West also downplayed potential U.S. tariffs impact on the company. Bank of America analysts expect Boeing to have a month over month increase in plane delivery in March.
Super Micro Computer, Inc. (SMCI) has announced new systems that integrate the Blackwell Ultra Platform, the latest generation AI chips from Nvidia. The updated products have been designed to handle complex AI functions such as training model, graphics and visualization. Supermicro’s stock rose 5.8% on Tuesday, recouping some of the steep losses that were posted in the previous trading session.
Caesars Entertainment (CZR), a resort and casino operator, announced the addition of two independent directors to its board. Shares rose 5.7%. Icahn Enterprises executives will occupy the two new board positions. Carl Icahn, the founder and controlling shareholder of Icahn Enterprises, had previously stated that he would refrain from engaging in activism relating to Caesars’ operations. However, following the board deal the major investor has discussed the possibility of exploring strategies for the digital business of the gaming company.
Intel (INTC) shares failed to build on their five-day winning streak, declining the most of any S&P 500 stock on Wednesday with a drop of 6.9%. The recent excitement for the stock revolves around the chipmaker’s appointment of semiconductor industry veteran Lip Bu Tan as its CEO. The new Intel CEO, who officially assumed the role this week, is said to have discussed major restructuring measures, including middle-management cuts, changes in manufacturing processes, as well as shifts in AI strategies.
The stock of Progressive (PGR), the insurer, fell 3.5% after it released its results for February 2025. Progressive, despite its strong gains in net income and premiums, reported a net realized loss of $110 millions, compared to a gain of 80 million dollars in February 2024.
The shares of biopharmaceutical giant Gilead Sciences have fallen 2.5% since reports surfaced that the Department of Health and Human Services may be considering drastic cuts in federal funding to HIV prevention. Gilead accounted for over half of its revenue in 2013 from HIV treatments. This includes pre-exposure prophylaxis medications prescribed to people at risk for contracting HIV.
