U.S. Stocks Jump After Fed Signals an Opening for Additional Interest-Rate Cuts

Wall Street cheered the Federal Reserve’s decisions to cut interest rates and keep the door open for more cuts, bringing the S&P 500 within striking distance of a record high. Stocks rose modestly after the central bank announced its decision before gaining steam when Fed Chair Jerome Powell said that the labor market “seems to have significant downside risks,” a message many investors welcomed as a dovish signal. “The market got the cut it wanted and although a January cut isn’t the base case, by no means did they put cold water on that potential move,” wrote Ryan Detrick, chief market strategist at Carson Group, in a note.