U.S. markets reacted strongly after the Federal Reserve cut interest rates by 25 basis points, lowering the federal funds rate to a range of 4%–4.25%.
At 11:36 p.m. IST (1:06 p.m. ET), the Dow Jones Industrial Average jumped 488 points, or 1.07%, to trade at 46,246.31. The S&P 500 added 20 points, or 0.31%, to 6,627.25, while the Nasdaq Composite slipped 28 points, or 0.13%, to 22,305.82, reflecting pressure in tech stocks.
The move underscores investor optimism around monetary easing, though traders are also parsing the Fed’s updated September Economic Projections, which signaled the funds rate could stand at 3.6% in 2025, lower than the earlier 3.9% estimate.
Bond yields ticked higher ahead of Fed Chair Jerome Powell’s press conference, where markets will seek clarity on the path of rate cuts into 2025.
