Fed Rate Decision Spurs Market Volatility Ahead of Trump-Xi Meeting
The S&P 500 ETF (SPY) dipped slightly while the Nasdaq 100 ETF (QQQ) edged higher following the Federal Reserve's 25 basis point rate cut. Dissent emerged among voting members, with one favoring a deeper cut and another advocating for no change. Chair Jerome Powell's remarks on potential December policy divergence triggered a sharp but fleeting stock selloff.
Powell cited 'moderate' economic expansion alongside stubborn inflation and rising unemployment. His observation that AI-driven layoffs may dampen future job creation added nuance to the rate debate. Markets now price in uncertain odds for another cut this year.