What impact will the Federal Reserve's rate cut have on stocks?

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.

We believe the global economy is likely to benefit as well, as major central banks around the world have already cut rates or are on the verge of doing so,' Scott Wren, senior global market strategist at Wells Fargo, said in a note.'Market environments with declining rates and rising profits tend to be supportive of equity prices,' according to John Lynch, chief investment officer for Comerica Wealth Management.

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Stock market today: Asia shares rise moderately ahead of closely watched Federal Reserve meetingAsian shares are mostly higher as investors focus on prospects for the U.S. Federal Reserve’s first cut to interest rates in more than four years. Benchmarks rose in Tokyo, Seoul and Shanghai but were little changed in Sydney. Trading was closed in Hong Kong for a holiday.
Source: AP - 🏆 728. / 51 Read more »

Stock market today: Asia shares rise moderately ahead of closely watched Federal Reserve meetingAsian shares are mostly higher as investors focus on prospects for the U.S. Federal Reserve’s first cut to interest rates in more than four years.
Source: ksatnews - 🏆 442. / 53 Read more »