Fed rate cuts ignite enthusiasm on Wall Street, U.S. stocks reverse wait-and-see sentiment

Golden Finance reported that on Thursday, the Federal Reserve announced its first interest rate cut in 2025 and hinted that it would further rate cuts in the future. Risk preferences permeate Wall Street, and US stock markets rose sharply. The rise in U.S. stocks on Thursday marked a reversal in traders’ initial reaction to the Fed’s decision last trading day, when Wall Street took profits on overly high tech stocks. "The Fed cut rates at a time when the stock market hit record highs and the economy is still growing, which is a very unique backdrop because the Fed cuts are often associated with economic issues. This dynamic is good for the stock market."