Dow Jones Industrial Average fluctuates after Fed rate decision; DJT, Super Micro, Nvidia, Tesla, More Movers; Treasury yields fell

While the Federal Reserve called for a quarter-point rate cut at its November meeting, traders are less confident in December.

The likelihood of a quarter-point interest rate cut in December has dropped to 63% from about 70% before today’s announcement, according to the CME FedWatch Tool. The likelihood that the central bank will keep the federal funds rate steady between 4.5% and 4.75% rose to 35.5% from 29.5% on Thursday. The chance of another half-point cut is 1.5%.

“Since the beginning of the year, labor market conditions have generally improved, and the unemployment rate has increased but remains low,” the FOMC said in a statement. “Inflation has advanced toward the Committee’s target of 2 percent but remains somewhat elevated.”

Traders lowered expectations for future cuts following Donald Trump’s 2024 election victory as the bond market suggested his landslide victory could lead to inflationary policies that keep rates high.