Federal Reserve Rate Cut Sparks U.S. Stock Market Surge

U.S. stocks soared on Wednesday as the Federal Reserve cut interest rates by 50 basis points, the most significant reduction in over four years. This decisive action aims to ensure inflation targets and maintain labor market health. Major indexes, including the Dow Jones, S&P 500, and Nasdaq, posted gains.

U.S. stocks soared on Wednesday following the Federal Reserve's decision to slash interest rates by 50 basis points, marking its first significant cut in more than four years.

Federal officials expressed greater confidence that inflation is aligning with their 2% target, prompting the aggressive rate cut to help stabilize the labor market.

Major indexes responded positively, with the Dow Jones Industrial Average climbing 165.62 points, the S&P 500 up 29.06 points, and the Nasdaq Composite rising 139.26 points. Smaller stocks, represented by the Russell 2000, also surged by over 1%.

(With inputs from agencies.)