Asian markets steady after Fed cut! Wall Street ends mixed; Oil, gold hold firm

Global markets steadied on Thursday after the US Federal Reserve cut interest rates by 25 basis points but signaled a cautious approach to further easing.

US equity futures rose around 0.3–0.4% after a volatile Wall Street session, where the Dow Jones Industrial Average gained 0.57% to close at 46,018.32, while the S&P 500 slipped 0.10% to 6,600.35 and the Nasdaq Composite dropped 0.32% to 22,261.33.

South Korea and Taiwan led regional gains with around 0.7% rises, while Japan’s Nikkei 225 added 0.3%.

Chinese stocks traded mixed, and weakness in Australian and New Zealand markets dragged MSCI’s Asia-Pacific ex-Japan index down 0.1%.

The Federal Reserve’s quarter-point rate cut was widely anticipated, but Chair Jerome Powell described it as a “risk-management” move to address labour market softness, Reuters reported.

He ruled out aggressive easing, even as policymakers penciled in two more cuts this year. Powell stressed the Fed’s need to balance employment risks with inflation control.

Markets also reacted in currencies and commodities.

The US dollar index briefly dropped to its lowest since February 2022 before rebounding to 97.07. The euro was steady at $1.1821 after briefly touching its strongest level since mid-2021, while sterling held flat at $1.3626.

In bonds, the 10-year US Treasury yield edged up to 4.09%, and the two-year yield rose slightly to 3.56%. Gold gained 0.3% to $3,670.19 per ounce, recovering from a dip after hitting a record high a day earlier.

Oil prices were steady, with Brent crude last at $67.95 per barrel.

The Fed’s cautious stance tempered earlier optimism, leaving investors weighing whether Wall Street’s rally, fueled by rate-cut hopes and AI-driven momentum, can be sustained.