Stocks Rally as Fed Cuts Interest Rates and Boosts Liquidity

Economic Outlook - The FOMC raised its 2025 GDP estimate to 1.7% from 1.6% and its 2026 GDP estimate to 2.3% from 1.8% [1] - The FOMC cut its 2025 core PCE price estimate to 3.0% from 3.1% and its 2026 core PCE price estimate to 2.5% from 2.6% [1] Interest Rates - The FOMC cut the fed funds target range by 25 basis points to 3.50%-3.75% in a 9-3 vote, indicating potential future adjustments to interest rates [2] - The median forecast for the fed funds rate is projected at 3.375% for the end of 2026, suggesting one 25 basis point rate cut next year [1] Stock Market Performance - The S&P 500 Index closed up by 0.67%, the Dow Jones Industrial Average up by 1.05%, and the Nasdaq 100 up by 0.42% [5] - Stocks rallied after the Fed's interest rate cut and a more dovish tone from Fed Chair Powell, alongside an increase in the 2025 GDP forecast and a decrease in core PCE price forecast [4] Corporate Earnings - Q3 earnings for S&P 500 companies rose by 14.6%, exceeding expectations of 7.2%, with 83% of reporting companies surpassing forecasts [7] - Photronics reported Q4 adjusted EPS of 60 cents, above the consensus of 45 cents, leading to a stock increase of over 45% [15] Sector Movements - Chip makers saw significant gains, with Micron Technology and Marvell Technology closing up more than 4% [13] - Mobile grocery delivery service companies declined after Amazon expanded its same-day delivery service, with Maplebear and Uber Technologies leading the losses [14]