The Dow finished up 497 points
The Dow carried its gains through the close, finishing up 497 points after the Federal Reserve cut interest rates by 25 basis points for the third -- and final -- time this year. The target range is now 3.50% - 3.75%, with Fed Chair Jerome Powell citing a cooling labor market, rising unemployment, and elevated though easing inflation. According to the central bank's dot plot, the Fed projects one rate cut in 2026, though the CME Fedwatch tool is pricing in a 68% chance of two rate cuts next year.
Bank stocks surged in response, with the S&P 500 finishing just shy of an all-time peak, while the Russell 2000 Index (RUT) managed to eke out a record close. The Nasdaq shook off its midday losses to settle in the black as well.
Continue reading for more on today's market, including:
5 Things to Know Today
- Private equity firm Blackstone has agreed to purchase utility giant MacLean Power Systems for a cost of over $4 billion. (Bloomberg)
- The U.S. have managed to overtake a sanctioned oil tanker off the Venezuelan coast, amid escalating pressure between the two countries. (CNBC)
- SpaceX buzz just gave SATS a boost.
- Chip stock enjoying a pre-earnings rally.
- Cracker Barrel stock hit roughly 16-year lows before turning higher.
Gold, Crude Push Higher Amid Rate Cut
The oil rig seize by the U.S. pushed crude higher for the session. January-dated West Texas Intermediate (WTI) crude added 21 cents, or 0.4%, to close at $58.46 per barrel.
Gold futures saw modest gains, while silver continued its surge, now within a chip-shot of record highs. February-dated gold closed up 0.2% at $4,242.50 per ounce.