EB Daily Market Report - Brief Update - Wednesday, October 29, 2025

Good afternoon!

The Federal Reserve decided to cut rates for a second consecutive meeting, this time 25 basis points to lower the fed funds rate range to 3.75%-4.00%.  There were two dissenting votes.  The newest Fed Governor Stephen Miran, President Trump's recent appointee, voted to cut rates by 50 basis points, citing the need to diminish risks posed by the current economic climate.  Meanwhile, Kansas City Fed President Jeff Schmid preferred to hold rates steady as he believes inflation remains too high.

The stock market was initially indecisive after the announcement, moving quickly in both directions, but more recently has turned lower.  We'll see how we trade into the close and go from there.  Technically, our major indices are trading above key moving averages like the 20-day EMA and AD (accumulation/distribution) lines remain strong, a bullish combination.

Technology (XLK, +0.22%) trails only energy (XLE, +0.77%) today, as semiconductors ($DJUSSC, +1.83%) are once again among the best industry performers.  Software ($DJUSSW, -1.05%) is a notable laggard.  Banks ($DJUSHB, -0.80%) and home construction ($DJUSHB, (-2.39%), two interest-rate-sensitive areas of the market, were flat prior to the Fed announcement at 2pm ET, but have since seen selling, especially the latter.

Microsoft (MSFT, -0.77%), Alphabet (GOOGL, +1.76%), and Meta Platforms (META, -0.93%) all report their latest quarterly results after the closing bell this afternoon and will have a meaningful impact on short-term trading, especially in the aggressive technology and communication services sectors.

Happy trading!

Tom