The major averages rose sharply in the afternoon after the Federal Reserve decided to cut interest rates once again this year with possibly more rate cuts in 2026. The Dow Jones Industrial Average gained 497 points, or 1.1%, to close at 48,057. The S&P 500

advanced 46 points while the Nasdaq Composite rose 77 points or 0.3% to 23,654.

The Fed approved another quarter percentage point cut at the conclusion of its two-day policy meeting. The cut, which marks its third in a row, brought the federal funds rate down to a range of 3.5%-3.75%. The Fed also announced it will start buying short-term bonds, expanding its balance sheet causing short-term Treasury yields to move lower. The 2-year Treasury yield dropped more than 7 basis points to 3.54%.  The benchmark 10-year Treasury yield fell more than 3 basis points to 4.15%, while the 30-year Treasury yield slipped a basis point to 4.79%.  In fact, the CME Fedwatch tool showed fed funds futures pricing in a 93.7% chance the central bank would slash rates two or more times next year.

The financials had a good day with JP Morgan bouncing back. Most sectors were higher today. GE Vernova was a diamond today up over 10% after raising guidance, hiking their dividend by 100% and increased their share buyback to $10 billion.

Big cap tech was quiet today. Uber was a dog today on a downgrade and concerns of growing regulations in Europe.

In the commodity space, oil rose a percent while gold was modestly higher and crypto was quiet.

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