Traders at the New York Stock Exchange were seen actively engaging as stock futures showed little movement on Wednesday night, following a recent interest rate cut by the Federal Reserve that positively influenced U.S. equity markets. Futures associated with the Dow Jones Industrial Average saw a modest increase of 57 points, or 0.1%, while S&P and Nasdaq 100 futures remained mostly stagnant below the flatline.
In after-hours trading, Oracle reported a significant drop of over 5% in its shares after the cloud infrastructure company released disappointing quarterly revenue figures. Conversely, Synopsys experienced a notable surge, climbing about 8% after receiving a $2 billion investment from Nvidia earlier in the month, backed by the company’s strong fourth-quarter results.
The stock market experienced an overall upswing on Wednesday, buoyed by a divided Federal Reserve’s decision to implement an interest rate cut, marking the third reduction this year. The Federal Open Market Committee decreased its key overnight borrowing rate by a quarter percentage point, bringing it to a range of 3.5%-3.75%, while also signaling a more gradual pace for future cuts. Fed Chair Jerome Powell emphasized that the central bank remains “well positioned to wait and see how the economy evolves,” attributing some inflationary pressures to President Donald Trump’s tariffs.
The major stock indexes closed positively, with the Dow gaining approximately 497 points, nearly 1.1%, and the Russell 2000 index, which focuses on small-cap stocks, achieving a record close. Smaller companies typically benefit more from lower interest rates due to their borrowing costs being more closely aligned with market rates. Despite the rally seen during the latter part of Wednesday’s session, some investors urged caution, noting that the Fed’s wait-and-see approach regarding future monetary policy could pose risks.
Chris Zaccarelli, chief investment officer at Northlight Asset Management, remarked on the current optimism in the markets, suggesting, “We’re not surprised to see near-term optimism in the markets given that the Fed continues to cut rates even though the economy is growing. However, we think the rose-colored glasses may come off once investors realize that the path to lower interest rates may take longer — or may not materialize at all — to the extent that they believe it will.”
Ellen Hazen, chief market strategist at F.L.Putnam Investment Management, echoed concerns about rising uncertainty regarding future interest rates and the mixed signals surrounding the U.S. economy. She warned that this environment could lead to increased volatility and risk premiums across risk markets, particularly equities, as the country moves into 2026.
