The Dow jumped 497.46 points (1.1%) to 48,057.75, the S&P 500 climbed 46.17 points (0.7%) to 6,886.68 and the Nasdaq rose 77.67 points (0.3%) to 23,654.16.

The late-day strength on Wall Street followed the Fed's widely expected decision to cut interest rates by another quarter point, bringing the federal funds rate to a range of 3.50'3.75%. The move, matching earlier cuts in September and October, revealed divisions within the Fed ' with Governor Stephen Miran favoring a deeper 50-basis-point cut, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred no change.

The Fed's projections showed differing views on the rate path, with forecasts for 2026 still pointing to 3.25'3.50% but individual estimates ranging from as low as 2.0'2.25%. Despite the split, markets rallied on expectations of a dovish shift under a new Fed Chair, though Northlight Asset Management's Chris Zaccarelli cautioned that investors might later temper their optimism if rate cuts come more slowly'or not at all.

Housing stocks substantially moved to the upside following the Fed announcement, driving the Philadelphia Housing Sector Index up by 3.1%. Transportation stocks was significantly strong, as reflected by the 2.7% surge by the Dow Jones Transportation Average. Banking, computer hardware and pharmaceutical stocks too saw considerable strength while software stocks showed a notable move to the downside.

Asia-Pacific stocks moved mostly lower. Japan's Nikkei 225 Index slipped by 0.1% while China's Shanghai Composite Index dipped by 0.2%. The major European markets turned in a mixed performance on the day while the U.K.'s FTSE 100 Index inched up by 0.1%, the German DAX Index edged down by 0.1% and the French CAC 40 Index fell by 0.4%.

In the bond market, treasuries regained ground after trending lower over the past several sessions. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, fell by 2.2 bps to 4.16%.

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