U.S. stock indices closed higher Wednesday after the Federal Reserve approved its third consecutive interest rate cut of the year, lowering the federal funds target range to 3.5% to 3.75%.
The Dow Jones Industrial Average jumped 497.46 points, or 1.05%, to 48,057.75. The S&P 500 gained 46.17 points, or 0.67%, to 6,886.68, finishing just shy of a record high. The Nasdaq Composite rose 77.67 points, or 0.33%, to 23,654.16.
Nine of the 11 primary S&P 500 sectors advanced, led by industrials and materials, which climbed 1.84% and 1.77%, respectively. Utilities slipped 0.11%, while consumer staples were unchanged.
The Federal Open Market Committee voted for a quarter‑point reduction at the end of its two‑day meeting, in line with market expectations. The move continues the easing cycle that began in September, aimed at supporting growth amid moderating job gains and persistent inflation pressures.
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the Fed said in a statement.
Fed Chair Jerome Powell told reporters the committee’s stance rules out near‑term rate hikes. “I don’t think that a rate hike is anybody’s base case at this point,” Powell said. “We’re well positioned to wait and see how the economy evolves from here.”
Earnings reactions were mixed. Cracker Barrel Old Country Store Inc. rose 3.52% despite missing revenue expectations in its first‑quarter results. GameStop fell 4.28% after reporting third‑quarter revenue down 4.5% year‑over‑year to $821 million. JPMorgan Chase rebounded 3.19%, recovering from a sharp drop in the prior session.