US stocks react mixedly after FED's decision to cut interest rates

Photo caption — Traders at the New York Stock Exchange, USA. Photo: THX/TTXVN

At the end of the trading session on October 29, the S&P 500 index fell slightly by 0.3 points to 6,890.59 points, the Dow Jones Industrial Average fell by 74.37 points (equivalent to a decrease of 0.16%). In contrast, the Nasdaq composite index - where technology stocks are concentrated - increased by 0.5%, reaching 23,958.47 points, setting a new record.

The highlight of the session was Nvidia (NVDA) shares, which surged to a record high after President Trump said he might mention Nvidia’s Blackwell AI processor during his meeting with Chinese President Xi Jinping on October 30. The surge pushed the AI chipmaker’s market capitalization past $5 trillion, making Nvidia the first company in history to reach that milestone.

In the recent policy meeting, the FED decided to cut interest rates by 0.25 percentage points. However, FED Chairman Jerome Powell was cautious when he did not give a clear signal about the next cut in December. Mr. Powell said that it was not inevitable to continue cutting interest rates at the December meeting, especially in the context of the lack of economic data due to the government shutdown.

The decision to cut interest rates this time also shows the division within the Fed. The newly appointed governor of President Trump, Stephen Miran, opposed the 0.25-point cut and argued for a more drastic cut of 0.5 percentage points. Meanwhile, Kansas City Fed President Jeff Schmid disagreed in the opposite direction, wanting to keep interest rates unchanged.

The reaction of the US stock market reflects investors' cautious sentiment in the face of unclear messages from the FED about the roadmap for interest rate cuts in the coming time.

Source: https://baotintuc.vn/thi-truong-tien-te/chung-khoan-my-phan-ung-trai-chieu-sau-quyet-dinh-giam-lai-suat-cua-fed-20251030063836267.htm