MARKET WRAP

Stocks whipsawed today after the Federal Reserve cut interest rates for the first time since the pandemic.

Fed Chair Jerome Powell cut the benchmark by 50 basis points. This decision came as inflation showed signs of easing and the job market weakened. The Fed expressed confidence that inflation is moving towards its 2% target and believes risks to employment and inflation goals are balanced.

The S&P 500 closed down by 0.29% after touching an all-time high during the session. The Nasdaq was down 0.31%, giving up a 1% gain earlier in the day. The Russell 2000 was up 0.25% and the yield on the U.S. 10-year hovered around 3.71%.

Energy was the only sector to close in the green. Utilities and Technology were the worst-performing sectors.

MRKT MATRIX: September 18, 2024

Today’s Top Stories:

• Dow closes lower, giving up 375-point pop after big Fed rate cut (CNBC)

• The Fed finally cuts rates. What the stock market historically does from here (CNBC)

• Bowman Dissent Over Cut Is First From a Fed Governor Since 2005 (Bloomberg)

• Exclusive: CEOs signal hiring pullback (Axios)

• Apple could fall to $200 on iPhone worries and that’s when you buy, says Morgan Stanley (CNBC)

• Microsoft, BlackRock Plan $30 Billion AI Infrastructure Fund (Barron’s)

• Get Ready to See Stock Prices in Half-Pennies (WSJ)

• U.S. Importers Are Pulling in Goods Early as Possible Port Strike Draws Closer (Bloomberg)

Today’s MRKT Call is Presented by SoFi

How Will Stocks React To Rate Cuts?

Dan Nathan, Guy Adami and Liz Young Thomas break down the top market headlines and bring you stock market trade ideas for Wednesday, September 18th.

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