ASX 200 Set to Rise as S&P 500 Rallies Amid Fed’s Rate Cut Outlook

Highlights: 

• S&P 500 Gains as Fed Holds Rates: US stocks surged following the Federal Reserve's decision to keep interest rates unchanged while reiterating expectations for two rate cuts in 2025. 
• Economic Projections Adjusted: The Fed revised inflation expectations slightly higher and lowered GDP growth forecasts for 2025 and 2026. 
• Corporate Updates: Washington H Soul Pattinson (ASX:SOL) raised its interim dividend for the 25th consecutive year, Judo Capital (ASX:JDO) faced a significant block trade, and Nanosonics (ASX:NAN) secured FDA approval for its CORIS system. 

ASX 200 futures pointed to a stronger open, rising 53 points (+0.67%) as of 8:30 am AEDT, tracking overnight gains in US equities. The S&P 500 posted a broad-based rally as markets absorbed the Federal Reserve’s latest interest rate decision and economic projections. The Fed maintained its policy rate at 4.25%–4.50%, aligning with expectations, and reaffirmed its outlook for 50 basis points of rate cuts by the end of the year. Key adjustments to its economic projections included an upward revision of the 2025 inflation forecast from 2.5% to 2.7% and a GDP growth downgrade from 2.1% to 1.7%. 

Despite the Fed's rate outlook, market volatility persisted amid concerns over global trade policies. The White House reiterated that reciprocal tariffs remain on track to take effect on April 2. Investors also monitored geopolitical tensions, particularly regarding US-China trade relations. Reports indicated that the US could experience a surge in copper imports as suppliers rush to ship materials ahead of potential tariff implementations. Meanwhile, the European Union warned that increased tariffs on aluminum and steel could exacerbate existing challenges for EU producers, who are already grappling with high energy costs and sluggish demand. 

Investor sentiment remained mixed, with market participants positioning defensively. Reports showed that retail investors refrained from buying the dip during the recent market correction, reflecting broader uncertainty. Additionally, short-term US debt attracted $22 billion in inflows as investors sought safe-haven assets amid ongoing volatility. 

In corporate developments, several key earnings and M&A announcements influenced market activity. Washington H Soul Pattinson (ASX:SOL) reported an 8.1% increase in statutory net profit after tax (NPAT) to $326.9 million for 1H25. The company also raised its interim dividend by 10% to 44 cents per share, marking the 25th consecutive year of dividend growth. Brickworks Limited (ASX:BKW) posted a 308% rise in underlying NPAT to $76 million, with its prior-year performance impacted by property revaluations. The company also raised its interim dividend by 4% to 25 cents per share. 

Judo Capital (ASX:JDO) faced market pressure after major shareholders Bain Capital and GIC announced plans to offload a combined 9.8% stake via a block trade at a floor price of $1.74 per share. Meanwhile, Cleanaway Waste Management Limited (ASX:CWY) confirmed the acquisition of Contract Resources for $377 million, with expectations of high-single-digit earnings per share accretion and $12 million in synergies. 

Nanosonics (ASX:NAN) secured a major regulatory milestone, receiving US Food and Drug Administration (FDA) approval for its CORIS infection prevention system. The company remains on track for the first phase of commercialisation in the first quarter of 2026. 

US technology stocks played a crucial role in driving market gains. Nvidia Corporation (NASDAQ:NVDA) launched its latest AI chip, focusing on enhanced computing power and the expansion of personal supercomputers. Tencent Holdings (HKG:0700) reported a 90% surge in Q4 profit, driven by strong gaming and digital advertising revenues. Meanwhile, Morgan Stanley (NYSE:MS) announced plans to lay off 2,000 employees in a cost-reduction initiative. 

Commodity markets saw mixed movements, with notable strength in uranium, which climbed 3.0% to a three-week high. Copper and gold miners recorded smaller gains, benefiting from broader market optimism. The energy sector also performed well, supported by expectations of sustained demand recovery. 

With global markets assessing the Fed’s latest guidance and trade policies remaining a key concern, investors are closely monitoring signs of market stabilization. The S&P 500’s rally was led by strong breadth across all sectors, with growth and energy stocks outperforming. Seasonal trends suggest that mid-March often marks a trough for equities, although continued volatility remains a possibility.