US Stocks Extend Gains After Fed
2025-12-10 20:07
By
Joana Taborda
1 min. read
The Dow Jones extended gains, closing 1.1% higher, while the S&P 500 rose 0.7% and the Nasdaq reversed early losses to end 0.4% higher on Wednesday as traders reacted to the FOMC decision and Fed Chair Powell’s remarks.
The Fed cut the fed funds rate by 25bps as expected and projected one additional rate cut next year, in line with its September outlook.
During the press conference, Powell noted that the current discussion centers on whether to stop cutting now or to lower rates “a little” or “more than a little” further, while virtually ruling out a rate hike.
Traders increased their bets on further easing and are now pricing in a 68% chance that the Fed will cut rates two or more times next year.
Industrials was the top performer.
Amazon gained 1.7% after unveiling plans to invest $35 billion in India over the next five years.
JPMorgan also soared 3.2%.
In contrast, Microsoft slid 2.8% after announcing a $17.5 billion investment in India over the next four years.