S&P 500 closes just shy of record as the Fed cuts interest rates
The rally was broad-based, with all sector ETFs gaining except for utilities.
All major US indexes climbed higher as the Federal Reserve lowered its policy rate by 25 basis points to a range of 3.5% to 3.75% in its final scheduled meeting of 2025. The Russell 2000 outperformed, closing at a new all-time high as small-caps especially benefit from easing. The rally was broad-based, with all sector ETFs gaining except for utilities.
While the move was nearly universally expected by both economists and prediction markets, stocks climbed higher during Fed Chair Jerome Powell’s press conference. The central bank also implied that policymakers aren’t in a hurry to cut rates going forward (emphasis added): “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”
Stocks that moved higher:
Nextdoor skyrocketed after Eric Jackson, architect of the rally in Opendoor Technologies, laid out a bullish thesis for the neighborhood social media platform.
Palantir’s stock price got a boost after announcing a new deal — valued at $448 million — with the US Navy to manage its submarine maintenance and supply chain.
Micron rose higher on a price target hike from Citi as prices for its core DRAM memory products spike.
EchoStar soared after Morgan Stanley analysts upgraded the stock ahead of SpaceX’s potential IPO.
GE Vernova jumped after the maker of power generation equipment raised its multiyear earnings forecast and doubled dividends amid the AI-powered electricity boom.
Stocks that moved lower:
GameStop fell after yesterday’s earnings call, where the video game and collectibles retailer reported that its Q3 revenues dipped about 5% year on year.
Hims & Hers slipped after federal lawmakers introduced a bill that would limit its ability to sell copies of blockbuster weight-loss drugs made by Eli Lilly and Novo Nordisk.
Amazon’s announcement that it more than doubled its same-day grocery cities since August sent shares of Instacart lower.
