Fed Cuts Rates; Markets Finish Mixed

Federal Reserve cuts rates; markets finish mixed

The Fed lowered rates by 25 bps, while stocks split: Dow and S&P slipped, Nasdaq rose on Nvidia strength. Shutdown-driven data delays keep traders focused on today’s PCE and spending reports.

TL;DR:

🏦 Fed cuts 25 bps
📊 Dow, S&P slip; Nasdaq rises
🛑 Shutdown delays key inflation data
📅 PCE, income data due today

Fed Cuts Rates 25 bps

The Federal Reserve delivered a 0.25% rate cut, citing persistent risks to the labor market and keeping guidance data-dependent. The move aimed to cushion growth as hiring cools, while leaving room for flexibility into year-end. Traders now price the path of easing against incoming inflation and jobs data. Source

Markets Mixed as Nvidia Lifts Nasdaq

U.S. equities closed split after the Fed: the Dow and S&P 500 edged lower, while the Nasdaq gained on a 3% jump in Nvidia. The tape reflected narrow leadership, with megacap tech offsetting broader softness. Positioning stayed cautious ahead of key inflation prints. Source

Shutdown Delays Key Inflation Data

The government shutdown postponed several major economic releases, including the PCE Price Index, complicating the Fed’s read on inflation. With official data spotty, investors leaned on high-frequency indicators and corporate commentary, raising headline sensitivity. Expect choppier sessions until the calendar normalizes. Source

PCE and Personal Income Data Due Today

Markets are watching today’s Personal Income and Outlays report and the PCE Price Index for signals on spending, savings, and inflation. Any delay from the shutdown could push volatility into next week, but a timely release would reset rate-cut odds. Reaction will hinge on core PCE’s trend versus expectations. Source 1 Source 2

Federal Reserve Cuts Rates 25 Basis Points