Major indices rise together on Powell's 'surprisingly dovish' remarks…Oracle 'tumbles' [New York Stock Market Briefing]

U.S. stocks rallied broadly on the Fed's interest rate cut and Fed Chair Jerome Powell's dovish remarks favoring easier monetary policy.

On the 10th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average closed at 48,057.75, up 497.46 points (1.05%) from the previous trading day.

The S&P 500 rose 46.17 points (0.67%) to 6,886.68, and the Nasdaq Composite climbed 77.67 points (0.33%) to 23,654.16. The S&P 500 also hit an intraday record high.

The Fed announced after the two-day Federal Open Market Committee (FOMC) meeting that it would cut the policy rate by 0.25% point to 3.50–3.75%. This is the third consecutive 25bp (1bp = 0.01% point) rate cut.

Of the 12 voting members, 9 voted in favor and 3 dissented.

Chair Powell said, "I don't think any FOMC member basically expects the next move to be a rate hike," dismissing the possibility of rate increases.

He also said the current policy rate is "within the neutral rate range, and toward the upper end," leaving room for additional rate cuts.

However, the dot plot shows only one 0.25% point cut each for next year and the year after. Considering the year-end projection and the current rate, another 0.25% point cut next year is possible, but wide disagreement among FOMC members makes it difficult to predict whether and how much rates will be cut next year.

The New York Times (NYT) noted that the neutral rate refers to a level that neither stimulates nor restrains the economy, so this comment could be interpreted as meaning a rate cut next year is not guaranteed.

U.S. Treasury yields were slightly softer. The 10-year Treasury yield, the global bond benchmark, was 4.17%, and the policy-sensitive 2-year Treasury yield was 3.60%, each down 1bp from the previous trading day.

By stock, financials rallied on expectations of rate cuts. JPMorgan Chase rose 3.19%, Amex gained 3.20%, and Goldman Sachs jumped 1.44%.

Oracle was up 0.67% in regular trading but plunged more than 6% in after-hours trading after third-quarter revenue missed market expectations.

Netflix fell 4.14% on concerns it may fail to acquire Warner Bros. Warner Bros. rose 4.49% amid a hostile takeover attempt by Paramount Skydance, approaching the $30 public purchase price offered by Paramount.

No Jeong-dong, Hankyung.com reporter dong2@hankyung.com