Fed Cuts Interest Rates - But Powell Warns The Markets - video Dailymotion

Benzinga

The Federal Reserve just delivered another 25-basis-point rate cut, lowering the federal funds rate to 3.75%–4.00% — its second consecutive cut in as many meetings. Fed Chair Jerome Powell struck a cautious tone, saying another rate cut is “not a foregone conclusion — far from it.”  Stocks reacted mixed:  Nasdaq Composite climbed 0.55% (+100 points) to 23,958.47  S&P 500 slipped 0.01% to 6,890.59  Dow Jones fell 74 points to 47,632.00  On the corporate front, Caterpillar (CAT) soared 12% on a strong earnings beat, while Boeing (BA) dropped 4% after reporting a wider Q3 loss. Verizon (VZ) reported mixed results but reaffirmed 2025 guidance.  Meanwhile, the CNN Fear & Greed Index rose to 42.3, signaling easing market fear — though sentiment remains cautious. Investors now await major tech earnings from Amazon (AMZN), Apple (AAPL), and Mastercard (MA).

Transcript

00:00The Fed just cut rates again, and the Nasdaq shot up more than 100 points in response.

00:05On Wednesday, the Federal Reserve lowered interest rates by 25 basis points for the

00:09second straight meeting, bringing the federal funds rate down to a range of 3.75% to 4%.

00:15But Jerome Powell made one thing clear, another cut isn't guaranteed.

00:19The Nasdaq Composite jumped 0.55%, closing near 23,958,

00:25while the Dow Jones slipped 74 points and the S&P 500 barely moved.

00:30Powell's cautious tone cooled off some euphoria,

00:33but investors still saw the move as a step toward easier policy.

00:37Caterpillar's stock surged 12% after a strong earnings beat,

00:41while Boeing fell 4% on a wider loss.

00:43Verizon delivered mixed results, but reaffirmed its 2025 outlook.

00:47Meanwhile, now all eyes are shifting to earnings from Amazon, Apple, and MasterCard.

00:52According to the CNN Fear and Greed Index, market sentiment improved slightly to 42.3% up from 39.3%.

00:59Still in the fear zone, but trending towards neutral.

01:02That means investors are nervous, but no longer panicking.

01:06Most S&P sectors finished lower, led by real estate and consumer staples,

01:10but tech stocks and communication services kept markets in the green.

01:14The bottom line, Powell just walked a fine line between relief and restraint.

01:19So what do you think? Did the Fed just pull off the soft landing, or is this the calm before the storm?

Fed Cuts Interest Rates - But Powell Warns The Markets

Category

Transcript

Be the first to comment

Recommended