* Brazil's benchmark rate stands near two-decade high of 15% * Investors scour little-changed statement for clues on cuts. * Inflation forecast trimmed to 3.2% in mid-2027, near 3% target. By Marcela Ayres.
The Federal Reserve's move to expand its balance sheet again by buying Treasury bills is expected to ease money-market strains, calming investor worries that years of bond-portfolio runoff had drained too much liquidity from the financial system.
US equity indexes rose on Wednesday after the Federal Reserve cut interest rates for the third straight time, while placing a timeline on the end of quantitative tightening and raising the outlook for economic growth next year.
The dollar sank and Wall Street rallied on Wednesday, with the small-cap Russell 2000 index surging to new highs, after the Fed cut interest rates and Chair Jerome Powell offered a positive outlook on the path for growth and inflation. More on that below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
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. Barring utilities and consumer staples, all sectors ended higher, led by industrials and materials.
The dollar sank and Wall Street rallied on Wednesday, with the small-cap Russell 2000 index surging to new highs, after the Fed cut interest rates and Chair Jerome Powell offered a positive outlook on the path for growth and inflation. More on that below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
* Indexes close higher: Dow 1.05%, S&P 500 0.67%, Nasdaq x 0.33% * Federal Reserve cuts rates by 25 basis points, cites labor weakness. * GE Vernova (GEV) surges after bullish 2026 revenue forecast. By Sin?ad Carew and Johann M Cherian.
Wall Street ended higher on Wednesday,? after the Federal Reserve cut interest rates by a quarter percentage point as expected and investors bet on further easing down the road even as the central bank signaled that it will put further cuts on pause for now.
Brazil's central bank held interest rates at a nearly two-decade high on Wednesday for the fourth consecutive meeting, and kept its hawkish tone unchanged by stressing the need to maintain borrowing costs steady "for a very prolonged period."
The Toronto Stock Exchange closed at a fresh record high on Wednesday, this time after the Bank of Canada, as RBC put it, delivered a "well-telegraphed, widely-expected" hold on rates, although the balance of risks was seen to have shifted from hold/cut possibilities to hold/hike.
* * Two-year yield poised for biggest drop in two months. * US labor costs rise slightly less than expected. By Chuck Mikolajczak. U.S. Treasury yields fell on Wednesday, after the Federal Reserve cut interest rates but signaled it will likely hold off on further reductions, in a move that was largely anticipated by market participants.
The U.S. dollar fell against
major peers including the euro, Swiss franc, and Japanese yen on
Wednesday after the Federal Reserve lowered interest rates in a
widely-expected move, but indicated it ...
* Loonie gains 0.4% against the U.S. dollar. * Touches its strongest since September 22. * BoC leaves its policy rate on hold at 2.25% * Canadian bond yields ease across the curve. By Fergal Smith.
Muni yields were little changed, and have barely moved over the past several trading sessions, said Kim Olsan, senior fixed income portfolio manager at NewSquare.
US equity indexes closed higher Wednesday after a divided Federal Reserve cut interest rates for the third straight meeting. * With the policy rate now within the neutral ranges, the Federal Open Market Committee has time to observe how the US economy evolves as more data are released, Chair Jerome Powell said at a press conference.
Gulf central banks cut key interest rates by 25 basis points on Wednesday, mirroring a move by the U.S. Federal Reserve to reduce rates by a quarter of a percentage point in another divided vote.
Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, raised the odds on Wednesday that the Federal Reserve will pause its easing cycle at the next policy meeting in January. Futures priced in a 78% chance the Fed will hold interest rates steady, compared with a 70% probability just before Wednesday's rate cut announcement.
* Indexes rally after Federal Reserve policy update. * Fed cuts rates by 25 basis points. * GE Vernova (GEV) surges after bullish 2026 revenue forecast. * Oracle, Broadcom (AVGO) results awaited this week. By Sin?ad Carew and Johann M Cherian.
Bitcoin is spiked briefly to $94,000 after the Federal Reserve cut interest rates by 25 basis points. Notable Statistics: Notable Developments: Trader Notes: Crypto trader Michael van de Poppe said traders are sticking to the standard FOMC playbook ? avoid leverage, avoid trading the announcement, expect the first move to be a head-fake, and wait for the real trend to form in the following days.
The U.S. dollar fell against major peers including the euro, Swiss franc, and Japanese yen on Wednesday after the Federal Reserve lowered interest rates in a widely-expected move, but indicated it will likely pause its easing cycle at the next policy meeting in January.
U.S. President Donald Trump said on Wednesday that the Federal Reserve's interest rate cut was small and that it could have been larger. Trump spoke at the White House after the Fed cut the benchmark policy interest rate by a quarter of a percentage point to the 3.50%-3.75% range.
* US central bankers split, with median seeing one rate cut in 2026. * Fed's Powell says rate policy well positioned. * Silver hits record high of $61.85/oz. By Ashitha Shivaprasad and Anushree Mukherjee. Dec 10 - Gold prices reversed course to rise on Wednesday after the Federal Reserve's rate cut, though uncertainty over next year's policy outlook persisted, while silver hit an all-time peak.
The U.S. dollar fell against major peers including the euro, Swiss franc, and Japanese yen on Wednesday after the Federal Reserve lowered interest rates in a widely expected move, but indicated it will likely pause its easing cycle at the next policy meeting in January.
* * Stocks up, dollar stays lower. * Powell says rate policy well positioned. By Caroline Valetkevitch. Major stock indexes added to gains while U.S. Treasury yields extended declines on Wednesday after the Federal Reserve cut interest rates and signalled it will likely pause further reductions in borrowing costs. The U.S. dollar stayed lower.
AST SpaceMobile Inc (ASTS) shares are trading higher Wednesday afternoon, climbing 3.6% immediately following the Federal Reserve?s decision to cut interest rates by 25 basis points. What To Know: The Fed?s move to lower the federal funds target range to 3.5%-3.75% has ignited a rally across high-beta sectors, including space technology.
After rate cuts at the last three Federal Open Market Committee meetings, the policy rate is in the range of neutral, giving the FOMC time to observe how the US economy evolves as more data are released, Federal Reserve Chair Jerome Powell said Wednesday at a press conference.
Federal Reserve Chair Jerome Powell said Wednesday that the current overshooting of the central bank's 2% inflation target is mostly the result of President Donald Trump's import tax hikes.
The Federal Reserve reduced its benchmark lending rate by 25 basis points Wednesday amid continued concerns about the health of the labor market, while policymakers reiterated their median rate expectations through 2028.
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Federal Reserve Chairman Jerome Powell said U.S. central bank interest rate policy is well positioned to respond to what lies ahead for the economy, declining to provide guidance whether another interest rate cut lies in the near future.
* Indexes: Dow up 0.61%, S&P 500 up 0.27%, Nasdaq down 0.06% * Federal Reserve cuts rates by 25 basis points. * GE Vernova (GEV) surges after bullish 2026 revenue forecast. * Oracle, Broadcom (AVGO) results awaited this week. By Sin?ad Carew and Johann M Cherian.
The Federal Reserve reduced its benchmark lending rate by 25 basis points Wednesday amid continued concerns about the health of the labor market. The central bank's Federal Open Market Committee lowered interest rates to a range of 3.50% to 3.75%, in line with Wall Street's expectations and marking a third straight quarter-percentage-point cut.
The Federal Reserve cut interest rates on Wednesday in another divided vote, but signaled it will likely pause further reductions in borrowing costs as officials look for clearer signals about the direction of the job market and inflation that "remains somewhat elevated."
The U.S. dollar extended losses against major peers including the euro, Swiss franc, and Japanese yen on Wednesday after the Federal Reserve lowered interest rates in a widely expected move.
The Federal Open Market Committee lowered the federal funds rate target by 25 basis points to a range of 3.50% to 3.75%, its statement Wednesday afternoon showed. Three officials dissented with Governor Stephen Miran preferring a larger 50-basis point reduction, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred no change.
The Federal Reserve cut interest rates by 25 basis points to 3.5%?3.75%, delivering a third consecutive reduction that met expectations but exposed a widening policy divide?within the central bank. Policymakers decided to ease borrowing costs again, even as inflation remains elevated, citing a softer labor market as the reason.
The U.S. Federal Reserve is ending 2025 with a bang, delivering another rate cut for consumers amid an uncertain year for the economy. The Fed nudged interest rates lower by a quarter-percentage point on Wednesday, adding to two prior cuts in 2025. That's good news for borrowers but not so much for savers.
The Federal Reserve on Wednesday said it would imminently start buying short-dated government bonds to help manage market liquidity levels to ensure the central bank retains firm control over its interest rate target system.
* Fed will start reserve management bond buying on December 12. * Fed balance sheet expansion follows recent end of quantitative tightening. * Fed bond buying is technical in nature. By Michael S. Derby.
A majority of U.S. central bankers believe they will need to cut short-term interest rates next year, but are widely split over how much, with a large group opposed to any cuts at all and three penciling in a rate hike.
A sharply divided Federal Reserve cut interest rates on Wednesday but signaled borrowing costs are unlikely to drop further in the near term as it awaits clarity on the direction of a job market showing signs of softening, inflation that "remains somewhat elevated" and an economy it sees picking up steam next year.
A majority of U.S. central bankers believe they will need to cut short-term interest rates next year, but are widely split over how much, with a large group opposed to any cuts at all and three penciling in a rate hike.
US equity indexes traded mixed in midday trading, with healthcare and industrials topping sector charts amid expectations that a divided Federal Reserve will emerge in monetary policy announcements later on Wednesday.
The anticipated move comes as policymakers are still operating without several key economic data releases that remain delayed or suspended due to the U.S. government shutdown.
White House economic adviser Kevin Hassett on Wednesday said U.S. President Donald Trump will make his final choice to lead the Federal Reserve within the next two weeks. With "stronger data" as a rationale, "you could definitely get to 50 basis points or even more," Hassett, the front-runner to be the Federal Reserve's next chair, said in an interview on Fox News' "America Reports" program.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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