Federal Reserve does not cut interest rates, Dow Jones index turns from rise to fall by 44 points
19/06/2025
The U.S. Federal Reserve did not cut interest rates, disappointing market participants, leading to a turn from rise to fall in U.S. stocks, with the Dow Jones index closing down 44 points on Wednesday.
The Fed hinted that it is not in a hurry to cut interest rates, causing the Dow to evaporate nearly 300 points of gains and gently turn negative, while the Nasdaq fluctuated and steadied.
At the close of the U.S. market, the Dow fell 44 points or 0.1%, closing at 42,171 points; the S&P 500 slightly dropped 0.03%, closing at 5,980 points; the Nasdaq rebounded 0.13%, closing at 19,546 points; the Golden Dragon Index, reflecting the performance of Chinese concept stocks, fell 0.82%.
Performance of the three major U.S. stock indices on Wednesday (18th):
The Dow Jones index fell 44.14 points, or 0.1%, closing at 42,171.66 points.
The Nasdaq index rose 25.18 points, or 0.13%, closing at 19,546.27 points.
The S&P 500 index fell 1.85 points, or 0.03%, closing at 5,980.87 points.
Seema Shah from Principal Asset Management pointed out that despite rising inflation prospects, the Fed still maintained its forecast of a 2 rate cut this year, which was quite surprising. Given the uncertainty in the economic outlook, the Fed itself is uncertain about how things will develop in the future.
Jay Woods, Chief Strategist at Freedom Capital Markets, stated: "The Fed's current rhetoric is akin to the tariff issue, shifting to a tone of 'deferred handling.' Although uncertainty has decreased somewhat, it still appears high in their view. Overall, the Fed's dual mandate remains under scrutiny, and the market should expect them to 'meet once at a time' until the impacts of tariffs become clearer."
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