What impact will the Federal Reserve's rate cut have on stocks?
CBSN
U.S. stocks leapt to record heights Wednesday before moderating their gains as the Federal Reserve delivered an interest rate cut on the bigger side of expectations, reducing its benchmark rate by 50 basis points.
Little changed in trading Wednesday ahead of the central bank's action at 2 p.m. Eastern time, in the wake of which equities surged, with the Dow Jones Industrial Average jumping more than 200 points to a new record before dialing back on its gains, up 154 points, or 0.4% as of 3 p.m.
The decision by the Federal Reserve's policy-setting committee to cut interest rates for the first time since 2020 was prefaced by an unusual amount of market uncertainty as to how much the Fed would lower its benchmark rate from a two-decade high of 5.25% to 5.5%, where it has stood since July 2023.
