Nasdaq Leads US Stock Market Rally Amid Inflation Worries, Fed Rate Hike Bets Rise

The US stock market saw a mixed performance on Wednesday, September 16, as the Federal Reserve's interest rate announcement and high treasury yield rates weighed against rising inflation worries.

The Nasdaq led the rally, followed by the S&P 500, while the Dow Jones index continued to face pressure. The Nasdaq gained 0.64%, with Nvidia being a key contributor due to its importance in the artificial intelligence investment cycle.

Investors were also focused on the Fed's policy decision and potential interest rate hike, with expectations of a 25-basis-point increase rising to around 92-93%. The 10-year Treasury yield remained near the 5% mark, a critical benchmark for investors. Crude oil prices above $100 per barrel kept inflation risks elevated.