Stocks little changed after Federal Reserve signals rate cuts to come as growth slows while inflation rises

US stocks stayed largely flat after the Federal Reserve kept rates in a range of 4.25% to 4.5%, as was universally expected, and cut its growth forecast while boosting the outlook for inflation.

The central bank also put out its so-called “dot plot,” which lays out officials’ views on where policy rates will go if the economy unfolds according to their expectations (obviously, a big “if”). The median policymaker thinks 50 basis points of easing will be delivered this year, the same as in March, but now sees less easing to follow in 2026.

Traders were pricing in about 46 basis points of easing through year-end heading into the decision.

A survey performed by Macro Policy Perspectives showed that Fed watchers were roughly split between those who expected the dot plot to signal the median official anticipated one or two cuts this year.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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