Joby Aviation closes $591 million stock offering with full underwriter option
Investing.com-- The S&P 500 closed lower Wednesday, as the Federal Reserve’s rate cut and outlook for two further cuts this year largely met market expectations.
At 4:00 p.m. ET, the Dow Jones Industrial Average gained 260 points, or 0.6%, and the S&P 500 index fell 0.1% though remains close to all-time highs of 6,626.99. The NASDAQ Composite slipped 0.3%.
Fed cuts rates, as expected, adds additional cut to forecast for this year
The Federal Reserve lowered interest rates by 0.25% on Wednesday for the first time in nine months and sees the need two more rates cuts this year as worries of softening in the labor market, which threatens the economy, outweigh concerns about inflation still running above the central bank’s target.
Fed members also tentatively backed two more rates cuts this year, up from the previous forecast for one more. But support for three cuts is far from solid, Morgan Stanley said.
"The SEP showed a median of three cuts for this year, but only just: a shift of one voter to two cuts would have left the median there," it added.
The Fed’s rate decision was also accompanied by a fresh set projections showing the Fed members maintained inflation and unemployment expectations for this year.
General Mills leads earnings parade
In corporate news, General Mills (NYSE:GIS) stock fell after the packaged foods company reiterated its annual sales and profit forecasts but notched a decline in demand in its key North America segment.
Quarterly volumes in North America at the Minneapolis-based group dropped by 16 percentage points compared to a year ago, with the company now anticipating that the overall category’s growth will fall below its long-term targets.
Concerns have swirled around whether American consumers are reining in expenditures during a time of broader tariff-fueled economic uncertainty. A gauge of consumer sentiment last week from the University of Michigan ticked lower, with sweeping U.S. levies cited as a key driver of households’ fears over the state of their pocketbooks.
Elsewhere, Apple’s (NASDAQ:AAPL) smartphone sales in China fell 6% in the weeks before the iPhone 17 launch, a sharper-than-usual slowdown ahead of a flagship release, according to Counterpoint Research.
Lyft (NASDAQ:LYFT) stock surged while rival Uber (NYSE:UBER)shares fell after Lyft announced a new partnership with Waymo to bring autonomous ride-hailing services to Nashville in 2026.
Workday (NASDAQ:WDAY) stock rose after activist investor Elliott Management unveiled a stake of more than $2 billion in the company and backed its leadership.
Baidu (NASDAQ:BIDU) shares surged, lifted by growing investor confidence in its home-grown AI chip efforts as China accelerates its drive toward semiconductor independence.
Peter Nurse, Ayushman Ojha contributed to this article