In New York, the Dow Jones Industrial Average rose 1.1% to 48,057.75 points. The S&P 500 gained 0.7% to 6,886.68 points, while the Nasdaq Composite technology index advanced 0.2% to 23,654.16 points.
In Europe, London's FTSE 100 index (UK) rose 0.1% to 9,655.02 points. Meanwhile, Paris's CAC 40 index (France) fell 0.4% to 8,022.69 points, and Frankfurt's DAX 30 index declined 0.1% to 24,130.14 points.
Although the Fed's interest rate cut was anticipated, markets have been under pressure in recent days due to concerns that the Fed would accompany this decision with a "hawkish" message, signaling a pause in monetary easing due to persistently high inflation.
However, Federal Reserve Chairman Jerome Powell's remarks at the press conference, which emphasized the job market, were interpreted by observers as a signal that the Fed may continue to lower interest rates in 2026.
According to Sam Stovall from CFRA Research, Federal Reserve Chairman Jerome Powell's speech delivered a surprisingly positive message to financial markets. He explained that investors had previously worried that Powell would take a "hawkish" tone, meaning a very tough stance on combating inflation and maintaining high interest rates. However, his message was actually much more dovish than anticipated.
This shift is seen as a morale booster, potentially becoming the main driving force behind strong stock market growth until the end of the year, closing the trading year in positive territory.
Powell described the current conflicting pressures as an unusual challenge, as the Fed's dual mandate of inflation and the labor market points to opposing policy directions. The Fed's third consecutive interest rate cut comes as inflation remains significantly higher than the Fed's 2% target.
The decision to cut interest rates by 0.25 percentage points brought the Fed's benchmark rate down to a range of 3.5% - 3.75%, the lowest level in about three years, in line with market expectations.
However, this decision revealed a split within the Fed, with three officials voting against it. Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid wanted to keep interest rates unchanged. Meanwhile, Fed Governor Stephen Miran supported a more aggressive interest rate cut of 0.5 percentage points.
In Vietnam, at the close of trading on December 10, the VN-Index fell 28.19 points (1.61%) to 1,718.98 points, while the HNX-Index fell 0.66 points (0.26%) to 256.48 points.
Source: https://baotintuc.vn/thi-truong-tien-te/thong-tin-fed-giam-lai-suat-khien-pho-wall-tang-diem-dong-usd-suy-yeu-20251211075904359.htm
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