Wall Street rises ahead of Fed announcement

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By STAN CHOE, AP Business Writer

NEW YORK (AP) — U.S. stock indexes are rising Wednesday as Wall Street waits to hear what the Federal Reserve will say in the afternoon about where interest rates may be heading.

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The S&P 500 was up 0.7% in morning trading. The Dow Jones Industrial Average was up 237 points, or 0.6%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 0.9% higher.

The relatively quiet trading is a respite following weeks of sharp and scary swings for the U.S. stock market. Uncertainty is high about how much pain President Donald Trump will allow the economy to endure in order to remake the system as he wants. He’s said he wants manufacturing jobs back in the United States and far fewer people working for the federal government.

Trump’s barrage of announcements on tariffs and other policies have created so much uncertainty that economists worry U.S. businesses and households may freeze and pull back on their spending.

If the economy gets too weak, the Fed could lower interest rates in order to give it a boost, as it has in so many prior downturns. It has plenty of room to cut, with its main interest rate sitting at a range between 4.25% and 4.50%.

But conditions may be more complicated for the Fed this time around. Besides goosing the economy, lowering rates would also push inflation upward, and worries are already high about inflation because of tariffs. The Fed does not have a good tool to fix what’s called “ stagflation,” where the economy is stagnating but inflation remains high.

Virtually all of Wall Street is expecting the Fed to announce no change to its main interest rate this afternoon, as it waits to see how conditions play out. For the moment, the job market seems to be relatively solid overall after the economy closed last year running at a solid pace.

What will be more important for investors is the set of forecasts the central bank will release after the meeting is over. That will show where Fed officials see interest rates, the economy and inflation heading in upcoming years.

The expectation among traders is that the Fed will cut rates at least two or three times by the end of 2025.

On Wall Street, Nvidia helped support the market after rising 1.4% to cut its loss for the year so far to 12.9%. It hosted an event Tuesday where it largely “did a nice job laying out the roadmap” and fighting back against speculation the artificial-intelligence industry is seeing a slowdown in demand for computing power, according to UBS analysts led by Timothy Arcuri.

Tesla also rose 2.7%, following two straight losses of roughly 5%. It’s still down 42.7% for 2025 so far. It’s been struggling on worries that customers are turned off by CEO Elon Musk’s leading efforts to slash spending by the U.S. government.

Big Tech has generally been at the center of the market’s recent sell-off, as stocks whose momentum had earlier seemed unstoppable have since dropped sharply following criticism they had simply grown too expensive.

On the losing side of Wall Street Wednesday was General Mills, which fell 2.3% despite reporting a stronger profit for the latest quarter than analysts expected.

The cereal and snack maker’s revenue fell short of analysts’ targets, in part because of a slowdown in sales for snacks. General Mills also cut financial forecasts for revenue and profit over its full fiscal year, partly because it expects “macroeconomic uncertainty” to continue to affect its customers.

In stock markets abroad, Japan’s Nikkei 225 slipped 0.2% after the Bank of Japan held steady on its own interest rates, as was widely expected. Japan also reported a trade surplus for February, with exports rising more than 11% as manufacturers rushed to beat rising tariffs imposed by Trump.

Other indexes were mixed across Europe and Asia.

In the bond market, the yield on the 10-year Treasury edged down to 4.30% from 4.31% late Tuesday.

AP Business Writers Yuri Kageyama and Matt Ott contributed.

Federal judge says Columbia student activist’s case should be heard in New Jersey

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NEW YORK (AP) — A Columbia University student activist who was detained by the U.S. government over his participation in pro-Palestinian demonstrations has the right to challenge the legality of his detention, but the case should be heard in New Jersey, rather than in New York or Louisiana, a judge ruled Wednesday.

Mahmoud Khalil, a legal U.S. resident with no criminal record, was detained by federal immigration agents on March 8. From there, he was taken to an immigration detention center in New Jersey, where he spent the night. Then he was taken back to New York, put on a plane and flown to an immigration facility in Jenna, Louisiana.

“These are serious allegations and arguments that, no doubt, warrant careful review by a court of law; the fundamental constitutional principle that all persons in the United States are entitled to due process of law demands no less,” wrote U.S. District Judge Jesse Furman.

This review should happen in federal court in New Jersey, rather than in the New York court where his legal team initially brought the case, or in Louisiana, where Khalil is now detained, because New Jersey is state where Khalid was being held at the time his lawyers first went to court, Furman wrote.

The federal government said it had to move Khalid to Louisiana because of a lack of available detention center beds in the metropolitan New York region. It also cited a bedbug infestation at the closer lockup in Elizabeth, New Jersey.

Attorneys for Khalil have disputed these justifications in a series of court filings since his arrest. They describe the transfer as a “retaliatory” action meant to deprive their client of access to counsel while ensuring the case is held in a jurisdiction that may be more favorable to the Republican administration’s unusual legal claim.

Secretary of State Marco Rubio has cited as grounds for Khalil’s deportation a rarely-used statute giving him sweeping power to deport those who pose “potentially serious adverse foreign policy consequences for the United States.”

While the White House has accused Khalil of “siding with terrorists,” they have yet to give any evidence for the claim. Still, President Trump has described Khalil’s case as the “first of many to come.”

Khalil, a 30-year-old international affairs graduate student, had served as a negotiator and spokesperson for student activists at Columbia University who took over a campus lawn last spring in protest of the war in Gaza.

Images of his maskless face at protests, along with his willingness to share his name with reporters, had made him a target among people who saw antisemitism in the demonstrations. In the weeks leading up to his arrest, Khalil repeatedly appealed to Columbia University’s interim president, Katrina Armstrong, for protection, citing threats from right-wing doxing groups.

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A UN staffer killed and 5 others wounded in a strike in the Gaza Strip, UN says

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By WAFAA SHURAFA and JULIA FRANKEL and SAMY MAGDY, Associated Press

DEIR AL-BALAH, Gaza Strip (AP) — An international United Nations staffer was killed and five others were wounded in a strike Wednesday on a U.N. guesthouse in the Gaza Strip.

Jorge Moreira da Silva, head of the U.N. Office for Project Services, declined to say who carried out the strike in the central city of Deir al-Balah but said the explosive ordnance was “dropped or fired” and the blast was not accidental or related to demining activity.

He did not provide the nationalities of those killed and wounded. The U.N. body, known as UNOPS, carries our infrastructure and development projects around the world.

The Israeli military, which has carried out a heavy wave of airstrikes since early Tuesday, denied earlier reports that it had targeted the U.N. compound.

But Moreira da Silva said strikes had hit near the compound on Monday and struck it directly on Tuesday and again on Wednesday, when the staffer was killed. He said the agency had contacted the Israeli military after the first strike and confirmed that it was aware of the facility’s location.

“Israel knew this was a U.N. premise, that people were living, staying and working there,” he said.

There have been no reports of rocket fire or other Palestinian militant attacks since Israel unleashed the airstrikes overnight and into Tuesday, ending a ceasefire that took hold in January. The Israeli bombardment continued into Wednesday, though at a lower intensity.

The Gaza Health Ministry said at least 436 people, including 183 children and 94 women, have been killed since Israel launched the strikes early Tuesday. It said another 678 people have been wounded.

The military says it only strikes militants and blames civilian deaths on Hamas because it operates in densely populated areas. Gaza’s Health Ministry records do not distinguish between civilians and combatants.

Frankel reported from Jerusalem and Magdy from Cairo.