US stocks reverse gains after Fed halves rate-cut forecast for next year

Investing.com -- US stocks gave up gains to trade lower Wednesday, pressured by a jump in Treasury yields after the Federal Reserve delivered a quarter-point rate cut, but halved the number of cuts expected for next year.  

At 2:20 p.m. ET (19:20 GMT), the Dow Jones Futures fell 0.5%, or 221 points, the S&P 500 fell 0.6% and the Nasdaq 100 Futures slipped 0.6%.  Fed halves rate-cut outlook for 2025

The Fed cut interest rates by 25 basis points on Wednesday, but halved the number of rate cuts expected for next year on concerns about a longer-than-expected journey to bring inflation down toward the 2% target. 

Fed members now see the benchmark rate falling to 3.9% for next year, suggesting just two rate cuts, compared with a prior forecast in September for four cuts. 

Treasury yields jumped following the news, with the 2-year Treasury trading surging 8 basis points to 4.319%.  Nvidia rebound to keep lid on tech downside

NVIDIA Corporation (NASDAQ:NVDA ) rebounded as investors bought the recent dip in the chipmaker, keeping the broader tech sector .The move higher in the chipmaker comes a day after it fell deeper into correction territory following its 10% plunge from a recent peak. 

Jabil Circuit Inc (NYSE:JBL ) was also in rally mode, surging 8% after reporting stronger-than-expected fiscal first quarter results and guidance.

Elsewhere on the earnings front, Birkenstock Holding ltd (NYSE:BIRK ) reported Q4 results that topped Wall Street estimates, sending its shares more than 3% higher.

General Mills Inc (NYSE:GIS ) stumbled after cutting its annual outlook on earnings as ramp up in promotional activity dented margins. 

Source: Investing.com