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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 15, 2025.
Brendan McDermid | Reuters
Stocks were mixed Wednesday after the Federal Reserve announced an interest rate cut for the first time since December and gave its outlook for the rest of 2025.
The S&P 500 added 0.1%, while the Nasdaq Composite dropped 0.3%. The Dow Jones Industrial Average outperformed, climbing 410 points, or 0.9%.
The Fed announced a 25 basis point interest rate cut as was widely expected, and called for two interest rate cuts for the remainder of the year. The decision puts the overnight funds rate in a range between 4%-4.25%.
The Fed’s decision comes even as inflation stays stubbornly above the central bank’s 2% target.
Any outlook from the Fed “sits on shifting sands,” said Thierry Wizman, Macquarie Group’s global foreign exchange and rates strategist. “To the FOMC’s extant hawks, Fed policy doesn’t present as being tight. And so Jay Powell will offer balance,” Wizman said, adding that he expects Powell to highlight the downside risk to employment growth but hold back from signaling several cuts after September.
Shares of high-flying tech stocks, including Palantir, Google parent Alphabet, and Amazon posted losses on Wednesday. Nvidia shares dropped more than 2% after The Financial Times reported, citing sources, that China has banned tech companies in the country from buying Nvidia’s chips.
Big-box retailer Walmart gained about 2%, lifting the 30-stock Dow, as investors hoped lower interest rates will give consumers some relief.
Stocks are coming off of a lackluster trading session, where major U.S. indexes ended little changed.
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