Stock market in New York persists in breaking records following reduced interest rates
In a move widely anticipated by market participants, the US Federal Reserve lowered the interest rate by 0.25 percentage points in September 2025. The decision, made by 11 out of 12 voting members, came in response to weaker labor market data and uncertain inflation effects from tariffs.
The broad market barometer, the S&P 500, responded positively to the interest rate decrease, rising by 0.84 percent to a record high of 6,656 points. The Dow Jones Industrial average also gained, reaching a new record high with a 0.63 percent increase to 46,301 points.
The key technology indices, including the Nasdaq 100 and Nasdaq Composite, also experienced gains. The Nasdaq 100 climbed 1.32 percent to 24,544 points, while the Nasdaq Composite rose by 1.24 percent. The S&P 500's 0.84 percent gain and the Dow Jones Industrial average's 0.63 percent increase were also significant contributions to the stock market's overall growth.
However, the interest rate decrease was somewhat less than what optimists had hoped for. Jürgen Molnar, a capital market strategist from the trading house Robomarkets, summarized the Fed's actions, stating that while the decrease was as expected, it did not necessarily indicate a significant easing.
The Fed kept its outlook on the future interest rate path vague, suggesting that the central bank continues to operate on a case-by-case basis. This lack of clarity in the future interest rate path may have contributed to the somewhat muted market reaction, as investors await further guidance from the Fed.
Despite this, many market participants were pleased with the decision, as there was a general expectation for the Fed to continue its accommodative monetary policy. The interest rate decrease, therefore, serves as a vote of confidence in the US economy and a signal that the Fed is prepared to take action to support economic growth.
As a result of the interest rate decrease, the rally can continue, with the stock markets showing signs of further growth in the coming days and weeks. The S&P 500, Dow Jones Industrial average, Nasdaq 100, and Nasdaq Composite all reached record highs following the Fed's decision, indicating a positive outlook for the US stock market.
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