The major averages reversed course after the Federal Reserve cut rates this afternoon, but then indicated the central bank might not cut interest rates again in 2025. The Dow Jones fell 74 points after being in the green for most of the day thanks to a strong rally in Caterpillar, up 11% on earnings. The S&P 500 declined just 30 cents while the Nasdaq remained in the green up 130 points.

As expected, the Fed lowered its benchmark overnight borrowing rate by a quarter percentage point to a range of 3.75% to 4%, but then signaled that a December rate cut was far from certain. The 10-year Treasury yield rose 8 basis points to 4.07%. The 2-year Treasury note yield added more than 10 basis points to 3.60%. The 30-year bond yield rose more than 6 basis points to 4.61%.

After the rate cut most sectors fell into the red including the financials. Large cap tech and AI stocks remained in the green. Google, Meta and Microsoft report after the close.

In the commodity space, oil was quiet, gold continued its pullback down 1.5% while crypto currencies took a hit down 2% or more.

All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it’s usage.