US benchmark equity indexes ended lower Wednesday after the Federal Reserve reduced its benchmark lending rate by 25 basis points, signaling that fewer cuts are anticipated than projected in September. The Federal Open Market Committee decreased interest rates to a range of 4.25% to 4.50% from 4.50% to 4.75%, aligning with Wall Street's expectations.
Policymakers had cut rates by 50 basis points in September and by 25 basis points last month. The FOMC's updated Summary of Economic Projections revealed that members increased their median federal funds rate outlook for 2025 to 3.9%, up from 3.4% projected in September. The rate projection was also raised to 3.4%, from 2.9% for 2026 and to 3.1%, from 2.9% for 2027. Additionally, members adjusted their longer-run median rate outlook to 3% from 2.9%. In commodities, January West Texas Intermediate crude oil experienced a slight decline, closing down $0.09 at $69.99 per barrel.
Conversely, February Brent crude, recognized as the global benchmark, was down $0.35, settling at $72.84 after a report indicated that US oil inventories decreased for the fourth consecutive week. In corporate news, Jabil reported a significant rise in shares, jumping 6.8% following the manufacturing solutions provider's announcement of smaller-than-expected declines in fiscal Q1 results and an upgraded outlook for 2025.
Conversely, General Mills witnessed a decrease in shares, dropping 2.9% after the company lowered its full-year earnings outlook due to increased investments aimed at enhancing volume and market share trends..