Market Optimism Soars as Fed Minutes Reveal Rate Cut Decision
Investors breathed a collective sigh of relief on Wednesday as the Federal Reserve’s September meeting minutes revealed a unanimous agreement on a 50-basis-point rate cut, the first in over four years. Despite differing opinions on the economic outlook, officials settled on a half-point reduction, sending the Dow Jones Industrial Average soaring 410 points, or 1.08%, in the late afternoon. The tech-heavy Nasdaq and S&P 500 followed suit, rising 0.5% and 0.7%, respectively.
Oil prices took a hit, with Brent crude dipping closer to $72 per barrel. Meanwhile, Alphabet’s shares plummeted over 2% as the Department of Justice hinted at breaking up Google, citing its monopoly on the online search engine market. The Justice Department vowed to find remedies to prevent Google’s dominance in the search market.
Nvidia’s stock continued its upward trajectory, rising almost 1% at the open on Wednesday. The AI chipmaker’s market capitalization surpassed Microsoft’s, reaching $3.26 trillion, while Apple’s market cap remained the highest at $3.44 trillion.
In other news, Boeing withdrew its latest offer to union machinists after negotiations broke down, with the strike entering its fourth week. The company’s “best and final proposal” included 30% pay raises for the 33,000 factory workers who have been on strike since September 13.
As investors await this week’s inflation report, market optimism remains high, with all eyes on the economy’s direction.
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