Federal Reserve Cuts Interest Rates to Stimulate Economy

On November 7, 2024, most U.S. stocks experienced gains after the Federal Reserve announced another cut in interest rates. This decision is part of the Fed's strategy to support economic growth amidst uncertainty following the recent presidential election. The S&P 500 rose by 0.7% while the Nasdaq composite saw a 1.5% increase. In contrast, the Dow Jones Industrial Average was relatively unchanged, indicating mixed responses across different sectors. The rate cut was anticipated by the market, with Treasury yields remaining lower post-announcement. Despite the positive movement in major stock indexes, bank stocks and smaller companies struggled, reflecting a loss of momentum in some market sectors related to the election outcome, particularly in trades linked to Donald Trump’s policies. Looking at broader trends, all major indexes reported significant gains over the week and the year, demonstrating a resilient stock market performance but with underlying challenges for specific sectors.