Dow Jumps Nearly 500 Points as Fed Rate Cut Sparks Broad Market Optimism

U.S. equities rallied on Wednesday after the Federal Reserve issued its third consecutive quarter-point rate cut, lifting the Dow by 497 points to 48,057.75. The S&P 500 gained 0.7% and briefly crossed a record high, while the Nasdaq added 0.3%. Investors cheered signals that rate hikes are off the table and that the Fed will resume short term bond purchases. Softer labor market language and improved inflation forecasts further supported expectations of continued easing into 2026.