Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+0.3%), and DJIA (+1.0%) are in the midst of some choppy action, currently sitting at session highs as investors react to Fed Chair Jerome Powell's comments at the press conference portion of today's FOMC meeting. 

Mr. Powell's comments fulfilled the market's expectations that today's rate cut would come with a hawkish tilt. In particular, the statement "I would note having reduced our policy rate by 75 basis points since September, and 175 basis points since last September, the Fed funds rate is now within a broad range of estimates of its neutral value, and we are positioned to wait and see how the economy evolves" echoes the sentiment that the FOMC will not be quick to provide additional easing in the near term. 

While the median estimate for the change in real GDP was revised up to 2.3% from 1.8%, the median estimate for the unemployment rate held steady at 4.4%, and the outlook for PCE inflation was revised down to 2.4% from 2.6%, the Summary of Economic Projections still shows a median estimate of just one rate cut in 2026, unchanged from September. 

Still, the major averages are noticeably improved from their pre-meeting levels, with each index now sitting above its unchanged week-to-date level.