Investing.com -- US stocks gave up gains to trade lower Wednesday, pressured by a jump in Treasury yields after the Federal Reserve delivered a quarter-point rate cut, but halved the number of cuts expected for next year.
At 2:20 p.m. ET (19:20 GMT), the Dow Jones Futures fell 0.5%, or 221 points, the S&P 500 fell 0.6% and the Nasdaq 100 Futures slipped 0.6%.
Fed halves rate-cut outlook for 2025
The Fed cut interest rates by 25 basis points on Wednesday, but halved the number of rate cuts expected for next year on concerns about a longer-than-expected journey to bring inflation down toward the 2% target.
Fed members now see the benchmark rate falling to 3.9% for next year, suggesting just two rate cuts, compared with a prior forecast in September for four cuts.
Treasury yields jumped following the news, with the 2-year Treasury trading surging 8 basis points to 4.319%.
Nvidia rebound to keep lid on tech downside
NVIDIA Corporation (NASDAQ:NVDA) rebounded as investors bought the recent dip in the chipmaker, keeping the broader tech sector .The move higher in the chipmaker comes a day after it fell deeper into correction territory following its 10% plunge from a recent peak.
Jabil Circuit Inc (NYSE:JBL) was also in rally mode, surging 8% after reporting stronger-than-expected fiscal first quarter results and guidance.
Elsewhere on the earnings front, Birkenstock Holding ltd (NYSE:BIRK) reported Q4 results that topped Wall Street estimates, sending its shares more than 3% higher.
General Mills Inc (NYSE:GIS) stumbled after cutting its annual outlook on earnings as ramp up in promotional activity dented margins.