A trader works, as a screen broadcasts a press conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate cut announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Oct. 29, 2025.
Brendan McDermid | Reuters
The Dow Jones Industrial Average rose on Wednesday as investors hope the Federal Reserve will lower interest rates and see more easing ahead.
The blue-chip index traded up 152 points, or 0.3%, while the Nasdaq Composite declined 0.4%, weighed down by a more than 2% decline in shares of Microsoft. The S&P 500 traded around the flatline.
Key financial names such as JPMorgan Chase were higher during the session as investors were optimistic that a rate cut will revive the U.S. economy. Shares of industrial companies like GE Vernova, which doubled its dividend, were also up.
Stocks have been teetering between slight gains and losses in recent sessions as investors await this week’s key Fed meeting, which is the final one of the year. The Fed is widely expected to deliver its third straight interest rate cut of a quarter percentage point, with fed funds futures suggesting a roughly 90% chance of a decrease, according to CME’s FedWatch tool.
Sentiment among members of the rate-setting Federal Open Market Committee remains divided, however, as some favor cuts to stave off further labor market weakness and others believe another cut could worsen inflation. Investors are looking to gauge members’ sentiment from the post-meeting statement and Chair Jerome Powell’s highly anticipated news conference Wednesday afternoon.
“Market expectations for the Fed have turned sharply dovish, raising the risk of outsized reactions if the Fed delivers a hawkish surprise,” said Bank of America analyst Vittoria Volta. “Against a backdrop of a potential Fed chair announcement and a wave of post-shutdown economic data, December may deliver more surprises, and volatility, than usual.”
The previous session saw lackluster moves in the broader market, where the broad-based S&P 500 and 30-stock Dow closed in the red, while the tech-heavy Nasdaq rose slightly.
The S&P 500 sits less than 1% below its last record close posted on Oct. 28, which was the day before the last Fed decision. On Oct. 29, the Fed cut rates, but Powell signaled that another reduction was not certain for December. That sent stocks lower that day and started a rough patch for equities through most of November until some Fed members began to signal a December cut may be in order. The benchmark then rebounded back to the near-record level its currently at.