(Telestock) – Wall Street moves higher after Fed rate cut announcementThe Federal Open Market Committee voted 11-1 (Michelle Bowman favored a 25-basis-point cut) to lower the benchmark rate by 50 basis points to reach a target range of 4.75%-5.0%, the first rate cut in more than four years.
The “dot plot” rate projections show that the median official is expected to lower rates by 1 percentage point by the end of the year, implying two more quarter stitch cuts or a wider half stitch cutThe statement adds a few words to say that the committee is “strongly committed to supporting maximum employment” as well as bringing inflation back to its 2% target.
Data released before the opening showed that the new construction sites started in the United States recorded a 9.6% increase in August after having collapsed a month earlier. Still on the macroeconomic front, the mortgage applications in the United States have seen a 14.2% increase in the last week, while 30-year mortgage rates have fallen to 6.15% from 6.26% the previous week.
As regards the quarterly, General Mills reported a smaller-than-expected decline in quarterly sales and forecast a gradual improvement in volumes in fiscal 2025. Among the Company Announcements, Intuitive Machines has been awarded a contract by NASA with a potential maximum value of $4.82 billion, Organon announced that it will acquire Dermavant (unit of Roivant) for up to 1.2 billion dollars.
Looking at the main indexes of Wall Street, the Dow Jones stands at 41,650 points; along the same line, the remains flatS&P-500with the prices positioned at 5,641 points. On parity the Nasdaq 100 (+0.15%); on the same trend, without direction theS&P 100 (+0.12%).
In the spotlight on the North American S&P 500 index compartments energy (+0.65%) and industrial goods (+0.50%). At the bottom of the ranking, significant drops are seen in the sector utilitieswhich reports a decrease of -0.50%.
To the top among the Wall Street Giants, Apple (+1.87%), Wal-Mart (+0.62%), Chevron (+0.58%) and Amgen (+0.55%).
The worst performances, however, are recorded on Intelwhich gets -1.75%. It moves below parity Honeywell Internationalshowing a decrease of 1.29%. Moderate contraction for Salesforcewhich suffers a decline of 0.91%. Below par American Express which shows a filing of 0.80%.
Among the best performers of the Nasdaq 100, Atlassian (+3.50%), Trade Desk (+2.13%), DoorDash (+2.13%) and GE Healthcare Technologies (+2.09%).
The strongest drops, however, occur on Modernwhich continues the session with -1.92%. It slips Netflixwith a clear disadvantage of 1.80%. In the red Intelwhich shows a sharp decline of 1.75%. The negative performance of stands out T-Mobile USwhich falls by 1.68%.