FOMC Cuts Rates for the Third Time to 3.50%-3.75%
The FOMC delivered its third rate cut of the year as widely expected, taking its fed funds rate target to 3.50%-3.75%, but while the No-Cut camp gained another dissenter, the "hawkish cut" nervousness heading into the announcement largely did not come to pass. The Fed maintained its dot-plot projections anticipating one more rate cut in 2026, though Fed Chair Powell's press conference also gave plenty of attention to the labor market headwinds while noting that inflation pressures would be well-contained in the absence of tariffs. Equity markets rallied, with S&P 500 briefly topping 6,900 while Treasuries were bought across the curve - particularly on the short end - sending the 2-10 maturity spread to its highest level since September. Fed Funds futures still give preference to two rate cuts in 2026 but with an even higher probability than going into today's meeting. US Dollar also weakened as yields fell while precious metals gained in the wake of today's Fed decision.In the opening hour of the evening session, stock futures are consolidating gains. S&P e-minis are off by 0.1% and Nasdaq Composite is down 0.3%. Weakness in Oracle shares after the company's Q2 earnings beat was accompanied by in-line guidance and a call for higher spending is weighing on sentiment in the Tech space, particularly Infrastructure Software - Oracle is down over 10%, Nvidia is off by 1.3%, and CoreWeave is off by 3% afterhours.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Planet Labs PBCup 13.6%Amtech Systemsup 10.3%Nordsonup 7.5%Exzeo Groupup 5.4%Synopsysup 2.7%Vail Resortsup 0.4%ALSO HIGHER -4Gemini Space Stationup 18.3% after getting designated contract market license from CTFCDOWN AFTER EARNINGS -Skillsoftdown 16.8%Oracledown 10.8%; Nvidiadown 1.4%, CoreWeavedown 3.2% in sympathyAdobedown 0.7%ALSO LOWER -Ur-Energydown 11.8% after convertible debt offeringT1 Energydown 10.6% after equity, convertible debt offering
