US stock indices fell on Thursday as markets digested the Federal Reserve’s statement, alongside pressure on the technology sector following disappointing earnings from Oracle.
In a move widely anticipated as a “hawkish cut,” the Federal Reserve on Wednesday lowered the federal funds rate by a quarter percentage point, bringing it into a range between 3.5% and 3.75%.
However, the move was accompanied by cautionary signals regarding the future path of monetary policy, with three dissenting votes within the Federal Open Market Committee — something not seen since September 2019.
The committee also raised its projection for economic growth (GDP) in 2026 by half a percentage point to 2.3% compared with the September forecast. It also continues to expect inflation to remain above its 2% target through 2028.
In a press conference following the decision, Federal Reserve Chair Jerome Powell said inflation remains “somewhat elevated” due to tariff effects, expressing hope that upcoming economic data will offer a clearer picture.
He noted that the Fed has cut rates by 175 basis points since September of last year, and that policy is now close to neutral territory.
As for trading, the Dow Jones Industrial Average rose by 1% (equivalent to 484 points) to 48,541 points as of 16:06 GMT, while the broader S&P 500 dipped 0.3% (equivalent to 22 points) to 6,864 points, and the Nasdaq Composite fell 1.1% (equivalent to 240 points) to 23,411 points.
