After the significant decline… US stocks rose at the beginning of trading

US stocks rose in Thursday’s trading after recording one of their worst days this year yesterday.
The broader US stocks rose by 0.9%, one day after their decline yesterday, following the US Federal Reserve’s announcement of reducing the pace of interest cuts over the next year compared to previous expectations.

US stocks

The benchmark rose by 383 points, or 1%, while the Nasdaq Composite Index rose by 1%. The S&P 500 is still on track to record one of its best years since the beginning of the third millennium.
Although the Federal Reserve announced yesterday that it would reduce the key interest rate by a quarter of a percentage point in accordance with expectations, investors were somewhat surprised by the Council’s announcement that it may cut interest rates next year twice for a total of half a percentage point, and not 4 times for a total of a full percentage point as was expected in the past year. Last September.

It is noteworthy that the S&P 500 fell by 3% yesterday, which is slightly less than its largest decline in a year.

Wall Street Stock Exchange

The Dow Jones index also fell by 1,123 points, or 2.6%, the Nasdaq index fell by 3.6%, while the Russell 2000 index of small-cap stocks fell by 4.4%.
Federal Reserve Chairman Jeremy Powell said yesterday that some, but not all, Council officials are already trying to inflict the state of uncertainty inherited on the new US administration that will take over the White House with President-elect Donald Trump.
Concerns are growing on Wall Street that President-elect Donald Trump’s preference for tariffs and other policies will fuel inflation.
“When the path is unclear, interest should be reduced at a slower pace,” Powell said.