The Federal Reserve cut its key interest rate by a quarter-point on Wednesday, signaling two more cuts by the end of the year as concerns about the US labour market grow. The move, the first rate cut since December, lowered the short-term rate to 4.1%, down from 4.3%. Fed officials, led by Chairman Jerome Powell, had held the rate steady earlier this year as they assessed the effects of tariffs, immigration policies, and other Trump administration measures on inflation and the economy.
However, the focus has shifted from inflation to job growth, as hiring has slowed significantly in recent months, and the unemployment rate has risen.
The rate cut boosted IT stocks in India, benefiting companies with a strong presence in the North American market. LTIMindtree rose nearly 3%, while Infosys, Wipro, and Mphasis gained around 2%. Other companies such as Persistent Systems, HCL Tech, Coforge, and Tech Mahindra also saw growth.
Following the Fed’s rate cut, the Indian stock market opened on a positive note. The Sensex rose by 447.5 points, reaching 83,141.21, while the Nifty climbed 118.7 points to 25,448.95.
