On Wednesday, U.S. stock markets ended with mixed results as investors evaluated the Federal Reserve's outlook on interest rates in light of the anticipated 25 basis point cut. The S&P 500 and Nasdaq 100 experienced minor declines of 0.1% and 0.3%, respectively, while the Dow Jones Industrial Average climbed by 260 points, bolstered by gains in traditional sectors. Although the Federal Open Market Committee's median projections indicate the possibility of two additional rate cuts this year, strong economic growth, low unemployment, and upward revisions to core inflation have cast doubt on the likelihood of further easing in 2026. Federal Reserve Chairman Powell also exercised caution, abstaining from confirming confidence in further cuts.
In sector performance, consumer staples and credit services excelled, with American Express appreciating by 2.8% and Procter & Gamble rising by 1.4%. In contrast, technology stocks faced downward pressure—Nvidia and Broadcom declined by 2.5% and 3.5%, respectively, amidst reports of Chinese restrictions on Nvidia chip purchases. Furthermore, Oracle and Palantir each fell by 1%, and other tech giants such as Amazon, Meta, Alphabet, and Tesla all saw declines exceeding 1%.
