On September 19th, Caixin learned that on Wednesday EDT, the Fed cut interest rates by 50 basis points, but Powell claimed not to be in a hurry to ease policy. The US stock market experienced a thrilling roller coaster ride, with all three major indices rising and then falling slightly, with both the Dow and the S&P 500 hitting new intraday highs.

Before the interest rate decision was announced, all three major indices fluctuated slightly. After the Fed announced a 50 basis point rate cut, the Nasdaq rose by nearly 1.2% at one point, but it started to decline steadily after Powell began speaking.

The Fed lowered the federal funds rate target range from 5.25%-5.5% to 4.75%-5% based on its confidence in achieving the 2% inflation target, marking the start of a new round of monetary easing.

Brian Jacobsen, Chief Economist of Annex Wealth Management, said that the actions of the Fed were sudden and forceful, and it is expected that there will be another 50 basis point rate cut within this year. The central bank expects to achieve a soft landing for the economy.

During the press conference, Powell stated that there are currently no signs of a recession in the US economy and he does not believe that a recession is imminent. He also mentioned that no fixed rate path has been set and decisions will be made on a meeting-by-meeting basis.

Despite Powell's optimistic outlook on the economy and inflation, he warned that it should not be assumed that substantial interest rate cuts will continue, as this could lead to a decline in stock indices.

Analyst Bret Kenwell from eToro believes that a slight pullback in the market is reasonable after the rebound before the Fed announced the rate cut. However, the long-term outlook remains optimistic, as long as the economy remains stable and inflation does not rise again, lower interest rates and strong earnings growth can continue to drive the stock market higher in the long run.

Toggle AI's Giuseppe Sette's comments suggest that the Federal Reserve's forceful intervention through significant interest rate cuts while trying to ensure a strong economic outlook is not harmonious. Significant interest rate cuts in an environment of economic slowdown have always been a precursor to market declines, and it is likely that we have already seen the market peak today.

Scott Helfstein, Chief Investment Strategist at Global X, said that the Federal Reserve wants to launch an interest rate cut cycle without causing an asset bubble, but a 50 basis point rate cut may be too aggressive. We have already seen a preemptive 50 basis point rate cut by the Fed, which may be seen as a concern about economic weakness. However, strong fundamentals in the coming weeks may calm the market and perhaps keep the funds from fleeing.

Market Dynamics

At the close, the Dow Jones Industrial Average fell 103.08 points, or 0.25%, to 41,503.10; the Nasdaq fell 54.76 points, or 0.31%, to 17,573.30; the S&P 500 Index fell 16.32 points, or 0.29%, to 5,618.26.

Most of the 11 sectors of the S&P 500 Index declined, with the Utilities sector falling 0.77%, the Information Technology/Technology sector falling 0.51%, the Financial sector falling 0.28%, and the Telecommunications sector rising 0.02%. The Energy sector rose 0.25%.

Most of the US industry ETFs closed lower, with Regional Bank ETFs and Bank ETFs each rising by less than 0.5%, while Semiconductor ETFs fell by over 1%, Technology Industry ETFs and Utilities ETFs each fell by nearly 1%, and Global Technology Stock ETFs fell by over 0.5%.

Popular stocks performance

Most large-cap technology stocks declined, with Intel falling over 3%, Netflix falling over 2%, Microsoft and Nvidia falling over 1%, Tesla and Amazon experiencing small declines, and Apple rising over 1%. Google and Meta saw small gains.

Space concept stock Intuitive Machines surged 38%, securing a navigation service contract worth $4.82 billion from NASA.

GameStop fell 2.5%, as the United States Federal Trade Commission announced that GameStop's CEO Cohen will be fined for violating antitrust regulations.

Alaska Air fell 3%, and after reaching an agreement with the U.S. Department of Transportation, the company completed the acquisition of Hawaiian Airlines worth $1.9 billion.

Most of the China concept stocks fell, with the Nasdaq Golden Dragon Index dropping 0.86%. NIO fell over 7%, XPeng fell over 4%, Li Auto fell nearly 3%, Bilibili fell over 2%, Futu Holdings and Manbang fell over 1%.

Company news

General Motors: Through an adapter, drivers will be able to use Tesla's Supercharger stations.

General Motors announced on September 18 that customers can use General Motors-approved NACS direct current adapters to access over 17,800 Tesla Supercharger stations. With the addition of Tesla's Supercharger network, General Motors' customers will be able to use over 231,800 public Level 2 and direct current fast charging stations in North America, and this number will continue to grow. The General Motors-approved NACS direct current adapter will first be available to U.S. customers, and will later be available to Canadian customers later this year.

GlaxoSmithKline has reached settlements in two Zantac-related lawsuits regarding heartburn medication.

UK pharmaceutical company GlaxoSmithKline said on Wednesday that it has agreed to settle two lawsuits in California that allege its discontinued heartburn drug Zantac causes cancer. GlaxoSmithKline said in a statement that it does not admit any responsibility in the two settlements.

Boeing will implement unpaid leave measures in the coming days.

Boeing announced that the company will initiate unpaid leave measures in the next few days, which will affect a large number of executives, managers, and employees in the United States. The company has decided to allow some workers to take a week off every 4 weeks. Boeing's CEO and leadership team will take corresponding pay cuts during the strike period.

Amazon will raise the hourly wage for warehouse workers by at least $1.50.

Amazon will increase the minimum hourly wage for warehouse hourly workers by at least $1.50, and will include Prime membership in their benefits plan. The company announced that this month, it will implement a salary increase for hundreds of thousands of employees in Amazon's large logistics business, raising the average base wage to over $22 per hour.