Wed 10 Dec: After the Bell🔒

Risk-On Surge After Fed Delivers Cut and Tones Down Hawkish Guidance. Your 5’ evening market wrap📄📈

ℹ️ Today’s performance tables & charts on the ‘Market Data’ post.

---

Good evening,

Equity markets rallied after the Federal Reserve delivered the widely expected quarter-point rate cut to 3.625% mid-range and a less hawkish-than-feared outlook, triggering a strong risk-on reaction.

The Dow and Russell 2000 outperformed, jumping roughly 1.5%, and the S&P 500 reached a record high. Short-end yields plunged, with the 2-year Treasury down 8bp to 3.53% as traders aggressively bought bonds.

In forex markets, the DXY Dollar Index (98.65 pts) fell to a five-week low as the greenback weakened broadly across all major currencies.

The FOMC voted 9–3 to cut rates to 3.50%–3.75%, marking a third consecutive reduction and the first meeting in six years with three dissents. Chicago’s Goolsbee and Kansas City’s Schmid opposed the cut, preferring no change, while Governor Miran argued for a larger half-point reduction. The Fed cited cooling job gains and rising downside risks to employment as justification for easing.

The updated ‘dot plot’ shows officials still expect only one additional quarter-point cut in 2026 and another in 2027, unchanged from September. Projections now see inflation at 2.4% and GDP growth at 2.3% in 2026. Powell said the inflationary impact of Trump’s tariffs is likely to be temporary.

---

ℹ️ Subscription costs $7.5/mth with the annual plan and has a 7-day trial. See unlocked posts for more samples and visit ‘Market Data’.

---