US stocks surged on Wednesday after the Federal Reserve decided to hold interest rates steady at their highest range in 22 years during its latest policy meeting. Market sentiment was boosted by the belief that the central bank may be done with further rate hikes. The S&P 500 rose over 1%, the Dow Jones Industrial Average gained nearly 0.7%, and the tech-heavy Nasdaq led the gains, soaring 1.6%.

The Fed's decision to maintain rates in a range of 5.25%-5.50% reflects its cautious approach as it waits to assess the impact of its aggressive credit tightening campaign on the US economy. Federal Reserve Chairman, Jerome Powell, stressed that the Summary of Economic Projections, which previously projected one more rate hike this year, is not a definitive plan or promise for the future.

Treasury yields edged lower, with the 10-year yield trading below 4.8% on Wednesday. This followed the US Treasury's quarterly refunding update, which revealed that the Treasury will auction $112 billion in debt next week, aligning with market expectations. Investors closely monitored the announcement, given its potential influence on the recent surge in yields.

The Fed's decision prompted a shift in expectations for future rate hikes. According to the CME FedWatch Tool, investors have priced in a 73% chance that the Fed will maintain rates through its January meeting, up from 59% the day prior.

During a press conference, Powell emphasized that the "dot plot" projection, which maps out policymakers' expectations for future interest rates, is not a set plan. He highlighted that numerous factors could influence the Fed's decision, making it subject to change. Stocks rose as Powell spoke, with the S&P 500 and Nasdaq both gaining over 1%, while the 10-year Treasury yield fell below 4.8%.

Despite concerns about the impact of the Fed's interest rate hikes and rising yields, the central bank does not foresee a recession in the near term. Powell emphasized that recent economic data, such as GDP growth and low unemployment rates, indicate a "strong" US economy. The Fed's upgraded assessment of the economy to "strong" in the third quarter reflects the positive momentum in economic activity.

The Fed reiterated its stance that future rate hikes will depend on various factors, including the impact of previous rate increases, lag effects, and economic developments. The decision to maintain rates was unanimous among the members of the Federal Open Market Committee.

In anticipation of the Fed's announcement, stocks were already trading higher. The S&P 500 rose 0.4%, the Dow Jones Industrial Average gained 0.2%, and the Nasdaq increased nearly 0.7%. Yields also trended lower, with the 10-year Treasury yield falling to 4.81%.

In other news, AMD's stock led the trending tickers page after reporting better-than-expected quarterly results, causing the stock to rise over 8%. However, Paycom shares plummeted more than 30% as the company issued lower sales guidance, and Estée Lauder's stock fell over 16% due to weak earnings and sales guidance.

Investors and analysts are closely watching Treasury yields, as they can significantly impact stock market performance. The US Treasury's quarterly refunding announcement brought relief to the market, as the auction of $112 billion in debt was in line with expectations. This development led to a decline in yields, with the 10-year yield trading around 4.8%.

Private payroll wage growth hit a two-year low in October, according to ADP's private payroll data. Pay growth for job changers declined to its smallest yearly increase since July 2021, while overall private payroll job additions in October fell short of expectations.

Lastly, the "Magnificent Seven" tech giants that have driven the stock market rally experienced divergent performances in October. Amazon and Microsoft were the only members to post gains of over 1%, while Alphabet and Nvidia saw their shares drop. Tesla stock fell nearly 20%, raising concerns about the adoption rate of electric vehicles. Meta Platforms issued softer-than-expected guidance, while Apple's stock experienced a lackluster month ahead of its upcoming earnings report.

Overall, the market responded positively to the Fed's decision to hold rates steady, with stocks rallying and tech stocks leading the gains. However, investors remain cautious about the impact of rising yields and continue to monitor various economic indicators for further market trends.