A trader works on the floor of the New York Stock Exchange (NYSE) on October 29, 2025, in New York City, USA, as Federal Reserve Chairman Jerome Powell’s press conference after announcing the Fed’s interest rate cut is shown on a screen.
Brendan McDiarmid | Reuters
of Dow Jones Industrial Average There was a sharp reversal on Wednesday, from record highs early in the session, after Federal Reserve Chair Jerome Powell suggested the central bank might not cut interest rates again in 2025.
The blue-chip index closed 74.37 points (0.2%) lower at 47,632.00. S&P500 It fell several points to end at 6,890.59. of Nasdaq Composite It outperformed, rising 0.55% to a new record close of 23,958.47. Nvidia. The Dow Jones Industrial Average rose as much as 334 points, reaching a new high for a time, before starting to decline.
The Fed cut its benchmark overnight borrowing rate by a quarter of a percentage point on Wednesday afternoon at the end of its two-day policy meeting, bringing the rate range from 3.75% to 4%. This is the second time this year that the central bank has cut interest rates. Prior to this decision, investors had been betting on another 15th rate cut at the December Fed meeting.
However, Chairman Powell contradicted market expectations by saying during the committee’s discussion that there were “very different views on how to proceed in December.” “Further cuts in policy rates at the December meeting are not a foregone conclusion. We are far from a conclusion,” he said.
of 10 year treasury Yields soared above 4% following Powell’s comments about the December meeting. Stocks that could suffer losses from rising interest rates led the market rollover. Things like consumer stocks costco and mcdonalds I declined. visa and master card It also fell.
Overall, Powell signaled that what he would do at the December meeting remains undecided, adding that inflation is not far from the Fed’s target.
“Powell reflects the tension within the Fed between those who support more aggressive easing and those who are concerned that inflation is too high even as the labor market weakens,” said Michael Rosen, chief investment officer at Angeles Investments. “In our view, markets are too aggressive in pricing in the pace and magnitude of future rate cuts. We see inflation as above the Fed’s target, nominal interest rates below nominal GDP growth, and monetary policy as moderately accommodative.”
Nvidia, the mega-cap technology name, held on to Wednesday’s gains, rising 3.1%. The artificial intelligence chip darling’s market capitalization exceeded $5 trillion during trading, marking the first time a U.S. company had reached such a valuation. Stock prices also recorded a five-day winning streak. The move comes just one day after the company announced a series of new deals, most notably one that included the semiconductor giant acquiring a $1 billion stake in Finnish networking company Nokia.
Five members of the Magnificent Seven are scheduled to report this week. Spending on data center construction is likely to continue, but disappointment among giant stocks could have a negative impact on the broader market. alphabet, meta platform and microsoft It is expected to be reported after the close of trading on Wednesday. apple and Amazon I will post the results on Thursday.
Investors also await the outcome of a meeting between President Donald Trump and Chinese President Xi Jinping in South Korea, but the U.S.-China trade tensions already appear to have eased following developments over the weekend. President Trump has said he expects to reduce fentanyl-related tariffs on China to 20%.
