U.S. stock index futures rose on Wednesday evening after the Federal Reserve reduced interest rates as expected, and indicated that more cuts would follow this year.
S&P 500 Futures inched 0.3% lower to 6,680.50 points, while Nasdaq 100 Futures climbed 0.5% to 24,575.00 points by 20:19 ET (00:19 GMT). Dow Jones Futures gained 0.2% to 46,471.0 points.
Fed cuts rates by 25 bps; Stephen Miran dissents
Wall Street indexes ended mixed on Wednesday after a choppy session, with traders assessing the Fed’s announcement. The S&P 500 closed little changed, while the NASDAQ Composite slipped 0.3%. The Dow Jones Industrial Average was the sole gainer, rising 0.6%..
The Fed lowered its benchmark federal funds rate by 25 basis points to a target range of 4.00% to 4.25%, delivering its first rate reduction since December.
Updated projections released after the meeting showed a majority of policymakers expect two more cuts in 2025, underscoring the central bank’s shift toward supporting a cooling labor market while still keeping an eye on persistent inflation.
Powell, speaking at his post-decision press conference, described the move as a “risk-management” step, saying officials wanted to guard against the possibility of a sharper rise in unemployment.
“The market is not convinced by these softest of soft-landing projections and thinks the Federal Reserve will probably need to do more with an additional 2–3 cuts now priced over and above the Fed forecasts,” ING analysts said in a note.
The decision was not unanimous. Newly appointed Governor Stephen Miran cast the lone dissent, arguing for a deeper 50 basis point cut.
His so-called “dot” on the Fed’s rate outlook was the most aggressive, projecting rates as low as 2.875% by the end of 2025, well beneath the consensus of his colleagues.
The dissent highlighted growing debate inside the central bank over how forcefully to respond to shifting economic conditions.
China reportedly urges firms to stop buying Nvidia chips; stock slips
In the corporate world, Nvidia (NASDAQ:NVDA) stock fell 2.6% after a Financial Times report stated that China’s internet regulator has instructed domestic technology firms to stop buying all of Nvidia’s artificial intelligence chips and terminate their existing orders.
LYFT Inc (NASDAQ:LYFT) stock surged 13.3% while rival Uber (NYSE:UBER) shares fell 5% after Lyft announced a new partnership with Google’s Waymo to bring autonomous ride-hailing services to Nashville in 2026.
Workday Inc (NASDAQ:WDAY) stock climbed over 7% after activist investor Elliott Management unveiled a stake of more than $2 billion in the company and backed its leadership.
Source :
https://www.investing.com/news/stock-market-news/wall-st-futures-rise-after-fed-lowers-interest-rates-signals-more-cuts-4243662
