Wall Street Slips Amid Fed Rate Cuts, Global Markets Respond

Wall Street experienced a decline from record highs as the U.S. Federal Reserve began a rate reducing cycle. Major U.S. indexes posted losses but maintained weekly gains. The global economy showed mixed reactions, with Japan and China keeping rates steady while commodities recorded weekly gains.

Wall Street experienced a downturn from previous highs on Friday as market participants adjusted to a new rate reducing cycle sparked by a significant mid-week cut from the U.S. Federal Reserve. Chair Jerome Powell clarified that the decision aimed to protect a resilient economy rather than respond to weak job data.

Despite early losses in major U.S. stock indexes like Dow Jones, S&P 500, and Nasdaq Composite, markets looked set to log weekly gains following Thursday's all-time highs. Future rate cuts are already anticipated, with Fed funds futures pricing in notable reductions by the end of the year and into 2025.

Global markets echoed these fluctuations. The Bank of Japan kept rates steady amidst U.S. economic uncertainty, and the dollar strengthened against the yen. European stocks fell due to weak Chinese economic data, while commodities like gold and oil showed gains. Key observers remain watchful of labor market signals and international economic trends to gauge future financial stability.

(With inputs from agencies.)