US Federal Reserve cuts interest rate by 25 basis points, citing risks to the labor market

US Federal Reserve cut down its benchmark interest rate by 25 basis points or 0.25%, yesterday. The Federal Funds rate, the benchmark interest rate of US central bank, now stands at between 3.75% and 4%. Risks in the labor market was the driver behind the decision to cut the interest rate, the US central bank said. US Federal Reserve Chairman, Jerome Powell, also said that an interest rate cut in its December monetary policy meeting was not a foregone conclusion.

US equity markets ended on a mixed note

Nasdaq ended the day, yesterday, 29^th October, 2025, up by 130.98 points or 0.55%. Dow Jones ended the day, down by 74.37 points or 0.16%. S&P 500 ended the day, down by 0.30 points or 0.0044%. Nvidia’s stock jumped by 2.99% yesterday after strong demand for its chips in the September quarter. It has now become the first company to touch the $5 trillion market valuation level.

European markets also saw a mixed day

Euro Stoxx 50 ended the day, yesterday, up by 1.46 points or 0.026%. Dax ended the day, down by 154.42 points or 0.64%. FTSE 100 ended the day, up by 59.40 points or 0.61%.

Asian markets have started the day in green

Nikkei is again gaining today. At 9:10 a.m. IST, 30^th October, 2025 it is up by 89.20 points or 0.17%. Hang Seng is up by 128.06 points or 0.49%. Kospi is up by 45.71 points or 1.12%. Shanghai composite is up by 2.53 points or 0.063%.

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Source: Dow Jones