NEW YORK, Dec. 10 (Xinhua) -- U.S. stock indices closed higher on Wednesday, after the Federal Reserve decided to implement its third consecutive interest rate reduction of the year, which brought the federal funds rate target range to 3.5 to 3.75 percent.
The Dow Jones Industrial Average surged 497.46 points, or 1.05 percent, to settle at 48,057.75. The S&P 500 advanced 46.17 points, or 0.67 percent, closing at 6,886.68, falling short of a new all-time high by less than five points. The Nasdaq Composite Index rose 77.67 points, or 0.33 percent, to end the session at 23,654.16.
Among the 11 primary S&P 500 sectors, nine registered gains, with industrials and materials emerging as the top performers, climbing 1.84 percent and 1.77 percent, respectively. Utilities and consumer staples were the sole decliners, dipping 0.11 percent and remaining unchanged, respectively.
At the conclusion of its two-day policy meeting, the Federal Open Market Committee (FOMC) voted for a 25-basis-point cut to the federal funds rate, aligning with widespread market expectations and continuing the easing trajectory resumed in September. This adjustment reflects the central bank's efforts to support economic expansion amid signs of moderating job growth and persistent inflationary pressures.
"In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the FOMC said.
During the subsequent press conference, Fed Chair Jerome Powell noted that the committee's measured approach effectively dismissed the prospect of near-term rate increases.
"I don't think that a rate hike ... is anybody's base case at this point," Powell said, adding, "We're well positioned to wait and see how the economy evolves from here."
Post-earnings reactions were mixed across individual stocks on Wednesday.
Cracker Barrel Old Country Store Inc. climbed 3.52 percent, although the restaurant chain reported first-quarter results that missed analyst expectations on revenue. GameStop declined 4.28 percent following third-quarter earnings that fell short of forecasts, with revenue dropping 4.5 percent year-on-year to 821 million U.S. dollars. In the financial sector, JPMorgan Chase rebounded 3.19 percent, recovering from a 4.7 percent drop in the prior session. ■