Stock Traders ‘Sell the News’ After Fed Goes Big: Markets Wrap
- Fed cuts rates by half point in decisive bid to defend economy
- Powell cautions against assuming large cuts will continue
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A rally that briefly drove stocks to their all-time highs bumped into a wall as the Federal Reserve signaled it’s not in a rush to ease policy after cutting rates by a half-point.
The S&P 500 wiped out a gain of 1% as Jerome Powell cautioned against assuming big rate cuts would continue. While that’s not necessarily bad given that aggressive easing is usually associated with economic stress, traders ended up pushing equities near session lows at the 4 p.m. New York close.