Fed’s Rate Decision Clouds Market Rally: Nvidia Shines Amidst Uncertainty

On Wednesday, the S&P 500 closed nearly flat while the Dow dipped following the Federal Reserve’s decision to cut interest rates. Fed Chair Jerome Powell's remarks about future cuts muddied the market outlook, though Nvidia shone with a record market value of $5 trillion.

The Federal Reserve's decision to cut interest rates led to varied reactions in the stock market on Wednesday. While the Dow Jones Industrial Average declined, the S&P 500 remained almost steady. Fed Chair Jerome Powell's cautious remarks on future rate cuts created uncertainty among traders.

Nvidia achieved a historic milestone, closing at a market value of $5 trillion, further fueling Wall Street's interest in artificial intelligence. Despite initial gains post-rate announcement, the market sentiment shifted following Powell's commentary, tempering expectations for a December rate cut.

Many firms reported strong earnings, exceeding Wall Street expectations and providing some market support. Notably, Caterpillar's profit exceeded projections, boosting its shares significantly. However, mixed results from giants like Meta, Microsoft, and Alphabet added complexity to the market's post-session dynamics.

(With inputs from agencies.)