Nvidia

The Federal Reserve announced on the 18th local time that it will lower the target range for the federal funds rate by 50 basis points to between 4.75% and 5.00%. This is the first rate cut by the Fed in four years.

After the Fed's rate cut decision was announced, U.S. stocks rose, Treasury bond prices rebounded, gold surged, and the U.S. dollar index plunged; but then all reversed sharply.

Specifically, the three major U.S. stock indices saw rapid gains expansion. The Dow Jones Industrial Average and S&P 500 both hit record highs during the session, but soon the three major indices gave back some of their gains and turned negative. At the close, the Dow fell 0.25%, the Nasdaq fell 0.31%, and the S&P 500 fell 0.29%.

Most large-cap tech stocks declined. Intel fell over 3%, Netflix dropped more than 2%, NVIDIA fell over 1%, and Tesla and Amazon saw slight declines. Apple rose over 1%, while Google and Meta posted modest gains.

Within less than three minutes after the Fed's announcement, the interest rate-sensitive two-year Treasury yield plunged more than 10 basis points, falling from above 3.64% to below 3.54%; the 10-year Treasury yield dropped from above 3.69% to below 3.64%. However, they quickly reversed from losses to gains. As of the time of writing, the two-year Treasury yield rose 0.69%, and the 10-year Treasury yield increased 0.47%.