Wall Street hits record highs as Fed signals rate cut

Business Oct 29, 2025

US stocks hit record highs on Wednesday, October 29, 2025, with the Nasdaq up 0.8%, S&P 500 up 0.4%, and Dow rising 0.7%.
Investors are betting the Federal Reserve will cut interest rates by 0.25%, bringing them down to between 3.75% and 4%.

Why does a rate cut matter?

A rate cut could mean cheaper loans and credit cards, making it easier for people and businesses to borrow or spend.
It often gives a boost to stock prices too—good news if you invest or follow the markets.

The Fed's current stance on the economy

The Fed is reacting to signs of easing inflation (prices rose just 3% over the past year) and a job market that's cooling off but still steady, with job growth slowing.
Everyone's watching what Fed Chair Jerome Powell says next about where things might go from here.