### Fed Cuts Rates as Markets Anticipate Future Policy Signals

In a move closely monitored by investors, the Federal Reserve has trimmed interest rates by a quarter of a percentage point, bringing the central bank's benchmark rate to a range of 4.5% to 4.75%. This decision, reached unanimously on Thursday, follows a half percentage point reduction in September and aims to support stable prices and full employment.

The focus now shifts to Federal Reserve Chair Jerome Powell and his forthcoming guidance on the future trajectory of monetary policy. Amid a backdrop of a strong economy, persistent inflation, and a disrupted job market, Powell's insights could be pivotal. Economists speculate that Powell may reveal whether the Fed prefers additional rate cuts or a more gradual approach going forward.

Meanwhile, tech stocks surged ahead of the Fed's announcement. The S&P 500 and Nasdaq Composite were up 0.6% and 1.2%, respectively, driven by gains in major tech companies like Nvidia and Amazon. The "Magnificent Seven" tech giants all saw shares rise by over 1%, with Meta leading the way with a more than 3% increase.

In the bond market, the recent rise in yields paused, with the 10-year Treasury yield falling about 7 basis points to 4.35%. The Information Technology sector spearheaded market gains, reflecting broader investor optimism.

Corporate news also made headlines as Arm Holdings' stock climbed by approximately 4%, despite revenue forecasts that fell short of Wall Street's expectations for robust AI-driven growth. Qualcomm shares remained stable after surpassing sales and profit estimates. On the other hand, Trump Media & Technology Group, the company behind Truth Social, saw a double-digit drop in its stock price, reversing gains made after the recent election.

Looking ahead, market watchers remain "exuberant" following Donald Trump's presidential election victory. Julian Emanuel from Evercore ISI predicts the S&P 500 could reach 6,600 by June 2025, an 11% increase from current levels. Buoyed by speculative public interest, as indicated by bitcoin hitting $76,000 and Tesla surging 14%, stocks could be in for a period of significant gains.