Dow Logs Best Day in 2 Weeks After Fed Rate Cut

05:02 PM EST, 12/10/2025 (MT Newswires) -- The Dow Jones Industrial Average notched its biggest single-day gain in about two weeks on Wednesday, advancing along with Wall Street's other major equity benchmarks after the Federal Reserve cut interest rates.

The Dow climbed 1.1% to 48,057.8, marking its best day since Nov. 25. The S&P 500 gained 0.7% to end at 6,886.7, while the Nasdaq Composite edged up 0.3% to 23,654.2.

Barring utilities and consumer staples, all sectors ended higher, led by industrials and materials.

The Fed reduced its benchmark lending rate by 25 basis points Wednesday, delivering a third straight cut of the same size, amid continued concerns about the health of the labor market. Policymakers reiterated their median rate expectations through 2028.

"Job gains have slowed this year, and the unemployment rate has edged up through September," the Federal Open Market Committee said in a statement following its two-day meeting. "More recent indicators are consistent with these developments."

Three FOMC members dissented from the majority, with Governor Stephen Miran preferring a 50-basis-point reduction and Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid voting in favor of a no-change stance, according to the FOMC statement.

"We expect the Fed will want to pause for a while to allow time for this and prior cuts to feed through the economy," Oxford Economics Chief Global Economist Ryan Sweet said in remarks e-mailed to MT Newswires.

US Treasury yields were lower, with the two-year rate falling 7.7 basis points to 3.55% and the 10-year rate down 4.3 basis points at 4.15%.

The committee's Summary of Economic Projections continued to show the median federal funds rate at 3.4% at the end of 2026, unchanged from September. The 2027 and 2028 rate outlooks were also maintained at 3.1% each.

Policymakers raised their annual economic growth views through 2028, while the unemployment rate is still seen at 4.4% next year. Policymakers lowered their views on 2026 personal consumption expenditures inflation and its core measure.

"The path forward for cuts won't be as much of a straight line as it has been since September, but next week's releases of the November employment and (consumer price index) reports should help to set the tone for near-term expectations," Jefferies Chief US Economist Thomas Simons said in a report.

West Texas Intermediate crude oil was up 1.2% at $58.96 a barrel in Wednesday late-afternoon trade.

In company news, GE Vernova (GEV) shares surged nearly 16%, the top gainer on the S&P 500. The company late Tuesday doubled its quarterly dividend and boosted its share buyback authorization by $4 billion.

Casey's General Stores (CASY) shares shed 5.3%. The convenience store operator late Tuesday narrowed its full-year inside same-store sales growth outlook and reported better-than-expected fiscal second-quarter results.

United Natural Foods (UNFI) on Wednesday outlined its long-term financial targets, aiming to boost sales to about $33 billion by fiscal 2028, which appeared to be below Wall Street's estimates. The grocery wholesaler's shares slumped 8.9%.

Gold was up 0.6% at $4,262 per troy ounce, while silver rose 1.9% to $62 per ounce.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.