The Federal Reserve delivered its highly anticipated 50-basis point interest rate cut this afternoon. While the decision initially pushed the Dow and S&P 500 to new record highs, the former reversed its triple-digit gain to settle 103 points lower, while the latter snapped its seven-day win streak amid concerns that the large cut may be indicative of a potential economic downturn.
While Fed Chair Jerome Powell assured investors downward inflation trends drove the decision, the Nasdaq still settled firmly in the red as well. Elsewhere, the Cboe Volatility Index (VIX) secured a third-straight daily gain.
Continue reading for more on today's market, including:
- 2 cheap stocks stand to benefit from lower rates.
- Checking in with Micron stock ahead of earnings.
- Plus, space exploration stock pops; beverage names to watch; and VFC upgraded.
5 Things to Know Today
- Boeing (BA) will temporarily furlough thousands of U.S. executives and managers amid a machinist strike that also spurred the company to freeze hiring. (CNBC)
- Hand-held radios that detonated across Lebanon killed 14 people and injured 450 more, including Hezbollah fighters. The Lebanese group blames Israel. (Reuters)
- Big NASA contract boosts space exploration stock.
- Keep these 2 energy drink stocks on your radar.
- Analyst praises VFC stock's risk-reward profile.
More Record Highs for Gold
Oil prices settled modestly lower on Wednesday as investors unpacked conflict in the Middle East, falling crude inventories, and the Fed's interest rate cut. October-dated West Texas Intermediate (WTI) crude shed 28 cents, or 0.4%, to close at $70.91 a barrel.
Gold prices notched a fresh record high after today's rate cut and the U.S. dollar weakened. Gold for December delivery was last seen 0.2% higher at $2,598.60.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
