Dow’s climb toward 48,000 closing level is thwarted as Fed’s Powell pushes back on December rate cut

Core Viewpoint - The Federal Reserve's quarter-point interest rate cut was anticipated, but the lack of clear signals for future cuts disappointed investors, leading to mixed stock market reactions. Group 1: Federal Reserve Actions - The Federal Reserve lowered its main interest-rate target by a quarter of a percentage point to a range of 3.75% to 4% [6] - The decision included two dissents: one member favored no change, while another preferred a larger 50-basis-point cut [6] - The Fed announced the end of its quantitative-tightening program in December [2][6] Group 2: Market Reactions - Following the Fed's announcement, major U.S. stock indexes fell, with the Dow dropping almost 0.2%, the S&P 500 closing flat, and the Nasdaq Composite rising close to 0.6% for a record high [6] - Bond yields increased across the Treasury curve, with the 10-year Treasury yield rising 7.4 basis points to almost 4.06%, impacting mortgage rates [3] - Market participants were surprised by the Fed's lack of commitment to further rate cuts, which affected bond market reactions [4][7] Group 3: Investor Sentiment - Investors began the session optimistically, pushing major stock indexes higher, with the Dow briefly surpassing 48,000 for the first time [5] - Positive earnings reports and expectations for progress on U.S. trade deals with China and South Korea contributed to initial market optimism [5]