US Markets React Positively to Fed's Rate Decision

On Thursday, major US stock indexes experienced a surge during premarket hours, following the Federal Reserve's decision to reduce interest rates by 25 basis points. This move was seen as a positive indicator for the markets, reflecting the Fed's proactive stance towards maintaining economic stability.

Powell's Optimistic Outlook on US Economy

Fed Chair Jerome Powell emphasized that more progress on inflation is necessary before further rate cuts can be considered. However, he expressed an optimistic outlook on the US economy for the coming year, which contributed to the bullish sentiment in the market.

Market Awaits GDP Estimate

In addition to the Fed's announcement, market participants were also anticipating the latest estimate on gross domestic product for the third quarter, which was scheduled for release before the market opened. The Dow Jones, Nasdaq 100, and S&P 500 all showed significant improvements, with the Dow Jones adding 0.15%, the Nasdaq 100 improving by 0.17%, and the S&P 500 advancing by 0.23%.

Euro Strengthens Against Dollar

The euro also showed strength against the dollar, rising 0.52% to trade at $1.04194 at 4:27 am ET, reflecting a broader positive sentiment across global markets.