At today’s (29.10.25) closing Wall Streetthe session was marked by sharp volatility as investors weighed in on statements from Federal Reserve Chairman Jerome Powell. The Dow Jones hit a new all-time high earlier in the day before reversing course and retreating as Powell hinted that the Fed may not cut rates again in 2025.
On Wall Street, indices moved as follows: the Dow Jones lost 73.72 points, or 0.15%, to close at 47,632.65. The S&P 500 edged down 0.16 points, remaining essentially unchanged at 6,890.73. In contrast, the Nasdaq Composite gained 130.98 points, or 0.55%, to close at a new all-time high of 23,958.47.
The Federal Reserve cut the key interest rate by a quarter of a percentage point, to a range of 3.75% – 4%, at the end of its two-day meeting. This is the second rate cut this year, while before the decision investors were discounting another cut at the December meeting. However, Powell tempered expectations, noting there was “intense disagreement about how to proceed in December,” adding that “further tapering is not a foregone conclusion.”
The yield on the 10-year U.S. Treasury note jumped back above 4 percent after Powell’s remarks, weighing on interest-sensitive stocks. Consumer goods stocks such as Costco and McDonald’s, as well as Visa and Mastercard, fell sharply.
Overall, Powell hinted that the December decision remains open, stressing that inflation is “not far from the Fed’s target” but caution is still needed before any further moves.