NEW YORK, New York - U.S. stocks advanced sharply Wednesday after the Federal Reserve's Federal Open Market Committee (FOMC)  reduced interest rates for the third month in a row.  "In support of its goals and in light of the shift in the balance of risks, the committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3‑3/4 percent," the FOMC said in a statement Wednesday afternoon. "In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks," the statement said.

Three members of the committee dissented, with two not wanting a cut, while the third wanted a half-percentage point cut. The cmmittee was last divided to this extent, some six years ago in 2019.

"A lack of deeper reductions could have been interpreted poorly by Wall Street, but news that the balance sheet will begin expanding again, albeit slowly, is certainly a reason to get excited and more than offset the concerns of limited benchmark trims ahead," José Torres, senior economist at Interactive Brokers told CNBC Wednesday. "Furthermore, the dots featured stronger growth forecasts, lighter inflation anticipations and neutral employment expectations, developments that are also supporting a bullish reaction in stocks and yields alike."

Wednesday's stock market rally was broad-based, with the blue-chip Dow Jones Industrial Average (^DJI) leading the charge. The index soared 497.46 points, or 1.05 percent, to close at 48,057.75. During the session, it reached a high of 48,197.30, not far from its 52-week peak of 48,431.57.

The benchmark S&P 500 (^GSPC) also posted solid gains, climbing 46.22 points, a rise of 0.68 percent, to finish at 6,886.73. Trading volume was robust at 3.367 billion shares. The index continues to hover near its record levels, with its 52-week range stretching from 4,835.04 to 6,920.34.

The tech-heavy NASDAQ Composite (^IXIC) advanced as well, adding 77.67 points for a gain of 0.33 percent, closing at 23,654.16. It was the busiest exchange by volume, with 6.683 billion shares changing hands.

U.S. Dollar gets swamped by sellers Wednesday, greenback endures across-the-board losses

The U.S. dollar came under heavy pressure Wednesday after the U.S. Federal Reserve cut interest rates by .25 percent. The move was widely anticipated, but despite the Fed indicating there may only be one more rate cut next year, bulls, having had enough, bailed out. 

The euro strengthened against the greenback, with the EUR/USD pair rising 0.55 percent to 1.1690, as investors responded to improved sentiment around the eurozone outlook and stabilising inflation trends across key European economies.

The U.S. dollar slipped against the Japanese yen, with USD/JPY easing 0.53 percent to 155.97, as demand for the yen picked up modestly amid cautious risk sentiment in Asian markets and ongoing speculation about potential policy adjustments from Japan's central bank.

In North America, the dollar weakened against the Canadian dollar, with USD/CAD falling 0.41 percent to 1.3788, supported by steady movements in oil prices, which tend to underpin the commodity-linked Canadian currency.

The British pound posted solid gains, with GBP/USD climbing 0.62 percent to 1.3377, as investors reacted to renewed optimism over the UK's economic outlook and lingering expectations that interest rates could remain elevated fin te UK or longer.

The U.S. dollar retreated sharply against the Swiss franc, with USD/CHF sliding 0.75 percent to 0.8001, reflecting continued demand for safe-haven currencies amid persistent uncertainty across global financial markets.

In the Asia-Pacific region, the Australian dollar strengthened Wednesday, with AUD/USD rising 0.59 percent to 0.6679, supported by improved risk appetite and firm prices for key export commodities. The New Zealand dollar also advanced, in fact doing better than the Aussie, with NZD/USD gaining 0.66 percent to 0.5818, outperforming several of its regional peers during the session.

Overall, Wednesday's currency movements reflected a generally softer tone for the U.S. dollar against most major counterparts, as traders reacted to the Fed's interest rate cut.

Global share markets end mixed Wednesday as investors weigh regional economic signals

Global equity markets finished Wednesday's session on a mixed note, with modest gains in parts of Asia offset by losses across most European and regional benchmarks, as investors weighed local economic data, corporate developments and shifting interest rate expectations.

 Canada's main benchmark joined the uptrend. TheS&P/TSX Composite Index (^GSPTSE)jumped 246.48 points, or 0.79 percent, to settle at 31,490.85, with nearly 300 million shares traded.

In London, the FTSE 100 edged higher, closing up 13.52 points, or 0.14 percent, at 9,655.53. The index traded between 9,622.74 and 9,689.47 during the session and remains well above its 52-week low of 7,544.80, though still shy of its recent high of 9,930.10.

Across continental Europe, markets struggled for direction. Germany's DAX slipped 32.51 points, or 0.13 percent, to 24,130.14, while France's CAC 40 fell more sharply, down 29.82 points, or 0.37 percent, to 8,022.69.

The broader EURO STOXX 50 also eased, closing 10.20 points lower, or 0.18 percent, at 5,708.12. The Euronext 100 Index declined 6.91 points, or 0.41 percent, to 1,691.54, and Belgium's BEL 20 finished 12.50 points, or 0.25 percent, lower at 4,989.10.

In Asia, performance was more varied. Hong Kong's Hang Seng Index posted solid gains, rising 106.55 points, or 0.42 percent, to 25,540.78, after touching an intraday high at its closing level. Meanwhile, Singapore's STI edged slightly lower, down 1.34 points, or 0.03 percent, to 4,511.90.

China's SSE Composite Index edged lower by 9.03 points, or 0.23 percent, to 3,900.50, as investors remained cautious on the outlook for growth and property sector stability.

In Japan the Nikkei 225 closed modestly weaker Wednesday, down 52.30 points, or 0.10 percent, at 50,602.80, after fluctuating in a narrow trading range throughout the session.

Australian equities ended marginally weaker. The S&P/ASX 200 slipped 6.50 points, or 0.08 percent, to 8,579.40, while the broader All Ordinaries eased 7.60 points, or 0.09 percent, to 8,868.20.

Across the Tasman, New Zealand's S&P/NZX 50 Gross Index recorded a sharper decline, falling 83.72 points, or 0.62 percent, to 13,371.06. 

In South Asia, India's S&P BSE Sensex fell 275.01 points, or 0.32 percent, to 84,391.27, retreating from recent record territory as investors locked in profits. Indonesia's IDX Composite, however, gained 43.75 points, or 0.51 percent, to 8,700.92.

Elsewhere in the region, Malaysia's FTSE Bursa Malaysia KLCI dropped 3.17 points, or 0.20 percent, to 1,611.00,. South Korea's KOSPI ended 8.55 points, or 0.21 percent, lower at 4,135.00.

North Asia delivered stronger performances in selected markets Wednesday. Taiwan's TWSE Weighted Index surged 218.13 points, or 0.77 percent, to 28,400.73, one of the strongest gains of the day among major regional indices.

In the Middle East and Africa, Egypt's EGX 30 advanced 112.20 points, or 0.27 percent, to 42,052.80, while Iin srael the TA-125 climbed 22.51 points, or 0.63 percent, to 3,610.15.

South Africa's Top 40 USD Net TRI Index gained 44.77 points, or 0.69 percent, to 6,543.57.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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