On Wednesday, the U.S. Federal Reserve announced a reduction in interest rates by a quarter point, resulting in the overnight funds rate now falling within the range of 4% to 4.25%. The market had already fully incorporated that move, resulting in traders receiving precisely what they anticipated. The decision reached by the Federal Reserve was nearly unanimous.
Only Stephen Miran, who was appointed by U.S. President Donald Trump and confirmed to the Federal Reserve board just this past Monday, expressed dissent and cast his vote in favor of a half-point cut. In the lead-up to the meeting, discussions circulated regarding the potential stance of governors Michelle Bowman and Christopher Waller — both of whom were appointed by Trump — suggesting they might support a more substantial reduction. Although the unity of the Federal Reserve conveys a semblance of independence, thereby enhancing its credibility among financial markets, the anticipated rate cut failed to significantly uplift market sentiment.
A significant proportion of central bank officials anticipate merely a singular reduction in 2026, a figure that is considerably lower than what traders had been factoring in. The dot plot additionally illustrated a divergence in rate projections for the upcoming year, indicating a degree of uncertainty surrounding the economic outlook. Chair Jerome Powell characterized the cut as “risk management,” indicating that the Fed was lowering rates out of caution rather than perceiving it as essential to bolster the labor market. The S&P 500 experienced a slight decline of 0.1%, while the Nasdaq Composite recorded a more pronounced decrease of 0.3%. Only the Dow Jones Industrial Average experienced an increase, rising by 0.6%. The Federal Reserve has implemented a reduction in interest rates by 25 basis points and anticipates two additional cuts within the current year. The decision, reached on Wednesday, was nearly unanimous, with the sole exception being newly appointed governor Stephen Miran, who cast his vote in favor of a 50-point reduction. Chair Jerome Powell referred to it as a “risk management cut.”
Reports indicate that China has imposed a ban on Nvidia chips. The Financial Times reports that Beijing has instructed companies to refrain from purchasing Nvidia’s RTX Pro 600D, a product specifically tailored for the nation. Nvidia’s CEO Jensen Huang expressed his feelings of disappointment. Meta has introduced its inaugural consumer-ready smart glasses. The Meta Ray-Ban glasses are priced at $799 and feature a built-in display, as announced by the company on Wednesday. The digital display is operable through hand gestures, facilitated by a wristband designed to detect muscle activity. On Wednesday, U.S. stocks exhibited a mixed performance in the market. The S&P 500 and Nasdaq Composite experienced declines, in contrast to the Dow Jones Industrial Average, which rose and reached an intraday peak.
On Thursday, the Asian markets exhibited a mixed performance. Japan’s Nikkei 225 experienced a notable increase, surpassing 1% to reach an unprecedented all-time high. In contrast, Hong Kong’s Hang Seng Index recorded a decline. A return on a stock amounting to 2,000%. By adhering to what is referred to as the “three circle rule,” a particular fund manager indicated that his team successfully achieved remarkable returns on a single stock.