Dow Jones hits fresh record high following US interest rate cut

US stocks were mixed during Wednesday’s trading after the Federal Reserve cut interest rates for the first time this year, with expectations for two more rate cuts in the remainder of 2025.

The Dow Jones Industrial Average rose by 0.7%, or 318 points, to 46,076 points as of 9:15 PM (Makkah time), after reaching a new record high of 46,261 points.

In contrast, the S&P 500 fell by 0.33%, to 6,587 points. The Nasdaq Composite also dropped by 0.8% to 22,159 points.

The Federal Reserve lowered their benchmark interest rates by 25 basis points (bps), in line with expectations, bringing the range to 4%–4.25%, after keeping them unchanged throughout all meetings in 2025.

The US central bank further signaled two additional rate cuts for the rest of this year, along with one more cut in 2026, which is below market expectations of three cuts.