The Fed just cut interest rates – but if Trump is president, the next move is unclear

The Fed just cut interest rates – but if Trump is president, the next move is unclear

Trader Michael Milano works on the floor of the New York Stock Exchange on Wednesday, December 18th.

U.S. stocks rose in anticipation of the Federal Reserve’s interest rate decision, scheduled to be announced at 2 p.m. ET.

The S&P 500 rose 0.29% to 6,068 and the tech-heavy Nasdaq rose 0.22% to 20,153.

The Dow Jones, trying to break its nine-day losing streak, gained 224 points, rising 0.52%.

If the Dow ends the day lower, it would be its 10th straight losing streak – the longest such streak since the Dow fell 11 straight sessions between September 20 and October 4, 1974.

The Dow’s attempt to emerge from its slump is gaining momentum as the Fed’s interest rate decision looms.

Contributing to the Dow’s decline, UnitedHealth stock is up 3.26%.

Nvidia, which joined the Dow in November, rose 3.63%, recouping losses suffered last week. The chipmaker is up about 180% this year but has seen a decline in recent days, contributing to the Dow’s losing streak.

Investors largely expect the Fed to cut interest rates by a quarter point, continuing the rate-cutting cycle that began in September.

While investors are excited about the interest rate decision, they will likely be most focused on the Fed’s expectations for the economy next year, detailed in its quarterly summary of economic forecasts.

The report includes a forecast of interest rate cuts for next year, known as the Fed’s “dot plot.”

Jay Hatfield, chief executive of Capital Infrastructure Advisors, told CNN that “all eyes” will be on the dot plan to get a sense of how the Fed thinks about the future.

The US dollar rose slightly, while Treasury yields remained largely unchanged.

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