Market Rally Continues as Fed Signals Dovish Stance

U.S. equities extended their rally for a third consecutive week, fueled by the Federal Reserve's revised rate-cut projections. The S&P 500 climbed 1.22%, while the tech-heavy Nasdaq-100 surged 2.22% as investors embraced risk assets.

Central bank policymakers accelerated their timeline for monetary easing, with the updated 'Dot Plot' indicating two potential rate reductions this year. This pivot overshadowed initial market jitters following Chair Powell's characterization of the latest 25-basis-point cut as precautionary.

The Fed's upgraded GDP forecast and stable inflation outlook helped dispel stagflation concerns. Market participants rotated into growth-oriented sectors, particularly technology, while small-cap stocks also benefited from the shifting rate environment.