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U.S. stocks closed mixed on Wednesday, with the Dow ending lower and the S&P 500 finishing flat, after the Federal Reserve announced an interest rate cut but Fed Chair Jerome Powell cast uncertainty over another rate cut in December.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 0.2% or 74.37 points to finish at 47,632 points, after hitting a record high in the session before the rate cut announcement.
The S&P 500 fell 0.30 points to end at 6,890.59 points, after recording a new all-time high in the previous session. Tech stocks gained, but consumer staples, real estate and materials stocks were the biggest losers.
The Technology Select Sector SPDR (XLK) added 0.7%. However, the Consumer Staples Select Sector SPDR (XLP) lost 2.4%, while the Real Estate Select Sector SPDR (XLRE) declined 2.7%. The Materials Select Sector SPDR (XLB) declined 2%. Eight of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq, however, rose 0.6%, or 130.98 points, to close at 23,958.47, hitting a fresh all-time closing high.
The fear gauge, CBOE Volatility Index (VIX), was up 3.05% to 16.92. Decliners outnumbered advancers on the NYSE by a 2.16-to-1 ratio. On the Nasdaq, a 2.28-to-1 ratio favored declining issues. A total of 20.71 billion shares were traded on Wednesday, lower than the last 20-session average of 21 billion.
On the Nasdaq, there were 1,453 new highs and 3,306 new lows. On the NYSE, there were 476 new highs and 170 new lows.
Fed Cuts Interest Rates but Stocks Decline
The Federal Reserve cut interest rates by a quarter percentage point at the end of its two-day FOMC meeting on Wednesday, to bring its benchmark policy rate in the range of 3.75-4%. This is the second time the central bank has cut interest rates by 25 basis points this year, the first being in September.
The rate cut was highly anticipated, and investors were betting on another 25-basis-point rate cut in the Fed’s December meeting. However, investors’ sentiment was dented after Powell didn’t give a clear picture of the future rate cut.
Although Powell didn’t rule out the possibility of a quarter-point rate cut in December, he said that Fed officials have completely different views on how to proceed. Powell said that a rate cut in December depends on several factors. However, he admitted that inflation has eased and is on track to meet the Fed’s 2% target.
The Dow quickly reversed on the heels of the Fed’s announcement and Powell’s comments, after touching a record high earlier in the session. The blue-chip index jumped as much as 334 points at its session’s high before giving up all the gains.
The 10-year Treasury yield also surged past 4% after Powell’s comments. Stocks that tend to lose from high rates took a hit. Shares of stocks like McDonald's Corporation ((MCD - Free Report) ) and Costco Wholesale Corporation ((COST - Free Report) ) ended 1.3% lower each.
Nasdaq Rallies, Earnings in Focus
The Nasdaq outperformed its peers despite Powell’s hawkish comments. The rally was led by a jump in NVIDIA Corporation’s ((NVDA - Free Report) ) stock after the AI darling made history by becoming the first company to reach $5 trillion in market cap. Shares of NVIDIA rose 3%. NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Investors also looked forward to Trump’s meeting with Chinese President Xi Jinping in South Korea. Investors are hopeful that the meeting, the first since 2019, will help ease trade tensions between the world’s two biggest economies.
Investors are also closely watching the earnings reports. A number of the “Magnificent Seven” names, such as Microsoft Corporation ((MSFT - Free Report) ), Alphabet, Inc. ((GOOGL - Free Report) ) and Meta Platforms ((META - Free Report) ), were scheduled to report their quarterly results after Wednesday’s closing bell.
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Stock Market News for Oct 30, 2025
U.S. stocks closed mixed on Wednesday, with the Dow ending lower and the S&P 500 finishing flat, after the Federal Reserve announced an interest rate cut but Fed Chair Jerome Powell cast uncertainty over another rate cut in December.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 0.2% or 74.37 points to finish at 47,632 points, after hitting a record high in the session before the rate cut announcement.
The S&P 500 fell 0.30 points to end at 6,890.59 points, after recording a new all-time high in the previous session. Tech stocks gained, but consumer staples, real estate and materials stocks were the biggest losers.
The Technology Select Sector SPDR (XLK) added 0.7%. However, the Consumer Staples Select Sector SPDR (XLP) lost 2.4%, while the Real Estate Select Sector SPDR (XLRE) declined 2.7%. The Materials Select Sector SPDR (XLB) declined 2%. Eight of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq, however, rose 0.6%, or 130.98 points, to close at 23,958.47, hitting a fresh all-time closing high.
The fear gauge, CBOE Volatility Index (VIX), was up 3.05% to 16.92. Decliners outnumbered advancers on the NYSE by a 2.16-to-1 ratio. On the Nasdaq, a 2.28-to-1 ratio favored declining issues. A total of 20.71 billion shares were traded on Wednesday, lower than the last 20-session average of 21 billion.
On the Nasdaq, there were 1,453 new highs and 3,306 new lows. On the NYSE, there were 476 new highs and 170 new lows.
Fed Cuts Interest Rates but Stocks Decline
The Federal Reserve cut interest rates by a quarter percentage point at the end of its two-day FOMC meeting on Wednesday, to bring its benchmark policy rate in the range of 3.75-4%. This is the second time the central bank has cut interest rates by 25 basis points this year, the first being in September.
The rate cut was highly anticipated, and investors were betting on another 25-basis-point rate cut in the Fed’s December meeting. However, investors’ sentiment was dented after Powell didn’t give a clear picture of the future rate cut.
Although Powell didn’t rule out the possibility of a quarter-point rate cut in December, he said that Fed officials have completely different views on how to proceed. Powell said that a rate cut in December depends on several factors. However, he admitted that inflation has eased and is on track to meet the Fed’s 2% target.
The Dow quickly reversed on the heels of the Fed’s announcement and Powell’s comments, after touching a record high earlier in the session. The blue-chip index jumped as much as 334 points at its session’s high before giving up all the gains.
The 10-year Treasury yield also surged past 4% after Powell’s comments. Stocks that tend to lose from high rates took a hit. Shares of stocks like McDonald's Corporation ((MCD - Free Report) ) and Costco Wholesale Corporation ((COST - Free Report) ) ended 1.3% lower each.
Nasdaq Rallies, Earnings in Focus
The Nasdaq outperformed its peers despite Powell’s hawkish comments. The rally was led by a jump in NVIDIA Corporation’s ((NVDA - Free Report) ) stock after the AI darling made history by becoming the first company to reach $5 trillion in market cap. Shares of NVIDIA rose 3%. NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Investors also looked forward to Trump’s meeting with Chinese President Xi Jinping in South Korea. Investors are hopeful that the meeting, the first since 2019, will help ease trade tensions between the world’s two biggest economies.
Investors are also closely watching the earnings reports. A number of the “Magnificent Seven” names, such as Microsoft Corporation ((MSFT - Free Report) ), Alphabet, Inc. ((GOOGL - Free Report) ) and Meta Platforms ((META - Free Report) ), were scheduled to report their quarterly results after Wednesday’s closing bell.