The Fed's interest rate cut ignites Wall Street's enthusiasm as US stocks reverse their cautious sentiment.

[Fed interest rate cut ignites Wall Street enthusiasm, US stocks reverse cautious sentiment] On Thursday, the Fed announced its first interest rate cut in 2025 and hinted at further cuts in the future, leading to a risk-on sentiment sweeping Wall Street, with US stocks rising sharply. The rise in US stocks on Thursday marked a turnaround in traders' initial reaction to the Fed's decision from the previous trading day, where Wall Street had taken profits on overbought tech stocks. Robert Schein, Chief Investment Officer of wealth management firm Blanke Schein, stated: "The Fed cutting interest rates while the stock market hits all-time highs and the economy is still growing is a very unique backdrop, as Fed rate cuts are typically associated with economic problems. This dynamic is favorable for the stock market."