stock market rally
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Investors Cheer as the Fed Delivers a Hawkish Rate Cut
The Federal Reserve lowered its benchmark rate by 25 bps, paired with a new $40 billion Treasury‑bill purchase program and an upgraded 2026 GDP growth forecast to 2.3 %. Chair Powell dismissed further hikes, prompting equity markets to rally and expectations of a year‑end “Santa Claus” surge. Meanwhile, President Trump’s criticism of Europe’s response to the Ukraine war heightened geopolitical tension, raising risk for tech and defense sectors that rely on transatlantic coordination and joint R&D. Investors are cautioned that policy uncertainty could increase volatility.
