US Stock Market Update

US stocks edged higher on Thursday, rebounding from a previous rout as the Federal Reserve indicated a slower pace of easing in 2025, while economic growth data showed resilience.

At 09:40 ET (14:40 GMT), the Dow Jones Industrial Average rose 355 points, or 0.8%. The S&P 500 gained 49 points, or 0.8%, and the NASDAQ Composite climbed 160 points, also 0.8%.

US GDP Shows Healthy Growth

The US economy grew faster than previously estimated in Q3, driven by robust consumer spending. The GDP increased at a revised 3.1% annual rate, up from an earlier estimate of 2.8%. This growth rate is well above the non-inflationary estimate of the Federal Reserve.

Fed Sees Only Two More Cuts in 2025

The Federal Reserve cut interest rates by 25 basis points on Wednesday as expected, signaling just two additional rate cuts next year, down from a previous forecast of four. Inflation is projected to remain above the target of 2%.

Micron Slumps After Weak Guidance

Micron Technology shares fell 16% after providing weaker-than-expected second-quarter guidance. In contrast, Darden Restaurants' stock rose over 13% following better-than-expected fiscal results, and CarMax's stock rose 6% after surpassing earnings expectations.

Crude Mixed as Global Outlook Clouds

Crude futures traded mixed as traders assessed varying central bank monetary policies. US crude futures (WTI) dropped 0.4% to $70.33 a barrel, while Brent rose 0.3% to $73.63 a barrel. A stronger US dollar, following the Fed meeting, has made crude more expensive for international buyers, despite a drop in US crude stockpiles.

(Ayushman Ojha contributed to this article.)