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2025-09-18 02:36:58
[US Stock Market Volatility After Fed Rate Cut] The stock market rebounded immediately after the Fed's rate cut, but subsequently gave up those gains. The Dow Jones Industrial Average rose 0.8%, or 380 points, while the S&P 500 briefly turned positive following the rate cut decision but is now falling again. The Nasdaq Composite Index remained lower on the day. The Federal Reserve cut interest rates by 25 basis points, the first rate cut in nine months. Fed officials believe that recent labor market weakness outweighs recent inflationary headwinds. The Federal Open Market Committee collectively and tentatively projects two more 25 basis point rate cuts for the rest of the year, indicating that the central bank is prepared to cut back-to-back rates at its final two scheduled meetings. Market expectations that the central bank will further lower borrowing costs to bolster the labor market have driven US stocks to record highs.
