Stock market today: Federal Reserve cuts interest rates by half a percentage point, stocks rise

Published On Sep 18, 2024, 2:09 PM

The Federal Reserve has cut interest rates by 0.5%, marking its first reduction since 2020. Most Fed officials expect a total of 100 basis points in cuts this year, with a split vote reflecting some disagreement on the size of the cut. Markets responded positively with significant gains in major indices, particularly the tech-heavy Nasdaq, which rose nearly 1%. Investors are optimistic about continued cuts which could boost interest-sensitive sectors like real estate and technology as borrowing costs decrease.