US stocks experienced a decline following the Federal Reserve's decision to cut rates by a quarter point, halting the positive momentum seen earlier in the trading day.
The Dow Jones Industrial Average dropped by 0.55% as it attempted to end the day in positive territory and break a nine-day losing streak, marking its lengthiest downward trend since 1978.
Similarly, the S&P 500 index fell by 0.65%, while the Nasdaq Composite, known for its tech-heavy components, slid by 0.68%.
Although the rate cut by the Fed was widely anticipated, the central bank's projections for 2025 indicated a reduced sense of urgency in easing monetary policies compared to what traders had previously expected.
Within the bond markets, the 2-year Treasury yield saw an increase of 0.07%, while the 10-year Treasury yield edged up by 0.05%.
Furthermore, the US dollar exhibited strength, surging by 0.4% in response to the Fed's decision.
Investors are now eagerly awaiting insights from Fed Chair Jerome Powell, who is scheduled to provide commentary during a press conference at 2:30 p.m. ET. Powell's remarks are anticipated to shed light on his perspectives regarding the current state of the economy and the rationale behind the Fed's recent actions.
