Wall Street Mixed as Fed Cuts Rate But Dampens December Hopes

On Wednesday, October 29, 2025, U.S. stock markets closed with a mixed tone after the Federal Reserve delivered its second rate cut of the year, yet tempered expectations for further easing in December.
While the mood initially lifted, the guidance from Fed Chair Jerome Powell that a December reduction “is not a foregone conclusion” pulled enthusiasm back.

Markets at a glance

• The Dow Jones Industrial Average slipped about 0.2% to roughly 47,632. A
• The S&P 500 ended nearly flat, finishing at 6,890.59. AP News+1
• The Nasdaq Composite rose 0.5% to close at 23,958.47, driven by strength in technology names.

What drove the action?

• The Fed cut its benchmark rate by 25 basis points to 3.75%-4.00% in an effort to support a job market showing signs of strain. Investopedia
• But Powell’s comments that there’s no guarantee of another cut in December underscored the Fed’s increasingly data-dependent stance — unsettling investors who were pricing in easier policy. Investopedia
• In the background, the tech sector surged: Nvidia became the first company ever to reach a market capitalization of $5 trillion, highlighting the AI-driven momentum lifting parts of the market. Reuters
• Bond yields moved higher: The 10-year Treasury yield climbed above 4.0%, reflecting rising expectations for fewer rate cuts ahead. Investopedia

Sector & stock movers

• Tech and AI names led the market’s advance, as investors piled into areas seen as beneficiaries of long-term trends.
• On the flip side, industrials and companies with weak earnings or large charges lagged. For example, Boeing fell after reporting a multi-billion-dollar charge related to its 777X programme. Investopedia

What’s next?

With official economic data still murky due to the U.S. government shutdown, the market will lean heavily on earnings and guidance over the coming days. The Fed’s messaging suggests that while one rate cut has been delivered, the path forward remains uncertain — and that may mean higher volatility. Analysts and investors alike will be watching for further clarity on inflation, employment, and the global economic backdrop.