Key Takeaways:
- The Fed held rates steady at 4.25%–4.5%, as expected.
- S&P 500 rose 0.43%, Dow gained 0.70%, Nasdaq climbed 0.27%.
- Bitcoin hit $99,111 (+2.78%); Ethereum reached $1,899 (+4.07%).
- Gold, silver, and oil rose on trade optimism and geopolitical tension.
- Altcoins like Solana, Cardano, and Dogecoin posted 3–5% gains.
On May 8, 2025, global financial markets experienced a significant rally following the Federal Reserve’s decision to maintain its benchmark interest rate at 4.25% to 4.5%.
This move, aligning with market expectations — with over 96% of market participants expecting this outcome, per CME FedWatch data — signaled an optimistic yet cautious approach amidst ongoing economic uncertainties, including a 2.4% year-over-year inflation rate and the newly announced engagement between the U.S. and China over tariffs.
Reacting to the announcement, S&P 500 rose 0.43% to 5,631.28, the Dow gained 0.70%, reaching 41,113.97, and Bitcoin surged by 2.78% to $99,111, while Ethereum advanced 4.07% to $1,899.
Stock Markets Respond Positively to Fed’s Decision
Major U.S. stock indices moved higher throughout May 8, supported by the Federal Reserve’s decision to keep interest rates steady at 4.25%–4.5%. This move reinforced investor confidence by indicating that borrowing costs are unlikely to increase further in the near term, easing concerns over corporate profitability and consumer demand.
Reacting to the news, the S&P 500 rose 0.43% to 5,631.28, the Dow Jones increased by 0.70% to 41,113.97, and the Nasdaq Composite added 0.27% to reach 17,738.16. Additionally, the Russell 2000, representing smaller companies, also gained 0.3%, closing at 1,989.66.
Investors also reacted to corporate earnings reports, with Disney shares surging 10.8% to $101.79 after posting better-than-expected results. Alphabet, meanwhile, fell 8% to $150.43, weighed down by concerns over AI competition and a potential loss of default search status on Apple’s Safari browser.
Cryptocurrency Market Sees Significant Gains
In the cryptocurrency sector, Bitcoin (BTC) approached the $100,000 mark, trading at $99,111, up 2.78% from the previous day.
Ethereum (ETH) also experienced a notable increase, surpassing $1,900, marking a 4.07% gain. The rise in ETH’s value coincides with the successful implementation of the Pectra upgrade, which aims to enhance network efficiency and scalability.
Additionally, Altcoins joined the rally led by Bitcoin and Ethereum.
Solana rose 4.5% to $150.29, its highest in weeks, while Cardano advanced 3.7% to $0.70. Dogecoin also climbed 4.7% to $0.18, fueled by renewed retail momentum. These upward moves across key altcoins reinforced the day’s bullish sentiment in digital assets.
Gold and Oil Prices Reflect Markets Sentiment
Gold rose 0.9% to $3,392.90 an ounce, before slipping back to $3330, while silver climbed 1.2% to $32.85 on safe-haven demand. Oil prices rose as well, with Brent at $61.63 and WTI at $58.64, fueled by optimism ahead of U.S.-China trade talks slated for May 10.
Source: Trading view
In Conclusion
The Federal Reserve’s decision to maintain current interest rates has provided a boost to financial markets, with both stocks and cryptocurrencies reacting positively. Bitcoin’s approach to the $100,000 milestone and Ethereum’s surge past $1,900 underscore the renewed investor confidence.
Nevertheless, investors should remain cautious, as upcoming economic data and policy decisions will be critical in determining whether this market momentum can be sustained.
All content provided here is for informational purposes only and does not constitute financial or trading advice. Trading involves risk and may result in financial loss. We strongly recommend consulting a licensed advisor before making any investment decisions.
