The months-long wait for the interest rate cut by the US Central Bank Federal Reserve is over. The Federal Reserve has cut the interest rate by 0.50 percent, exceeding the market’s expectations. After that, the US stock market reached a new record level on Wednesday. However, later the market fell.
New record high created in intraday
Before the Federal Reserve’s announcement, the US market was trading volatile and the major indexes were fluctuating in the range of more than 1 percent. After the announcement of reduction in interest rates, at one time the US market managed to create new records. The Dow Jones Industrial Average and S&P 500 index reached new highs with a rise of around 1 percent.
The US market closed with a slight loss
However, the market could not maintain this momentum and later closed with a loss. After the end of trading, the Dow Jones Industrial Average closed with a slight decline of 0.25 percent at 41,503.10 points. Similarly, the S&P 500 index fell 0.29 percent to 5,618.26 points and the Nasdaq Composite closed 0.31 percent lower at 17,573.30 points.
There was a rise for 7 consecutive days
Before that, Federal Reserve Chairman Jerome Powell announced the policy. He said that the Federal Reserve has decided to reduce the interest rate by 50 basis points i.e. 0.50 percent. The market was expecting a cut of 0.25 percent. The market was witnessing a rally due to the expectation of a cut in interest rates by the Federal Reserve. The US markets were strengthening for seven consecutive days. Analysts believe that the market has already digested the interest rate cut.
The market can have a good start
The impact of the Federal Reserve’s decision can also be seen on the domestic stock market today. There are signs of a good start in BSE Sensex and NSE Nifty today. Before the market opens, Nifty futures in GIFT City are trading at a premium of about 30 points.
Also read: Interest rates reduced in America, historic decision taken after 4 years, what will RBI do now?
