Wall Street declines but still on track for weekly gains

US stock indices lost ground on Friday on profit-taking after a spike yesterday following the Federal Reserve’s policy decisions this week.

The markets have processed the impressive 0.5% interest rate cut announced by the Federal Reserve on Wednesday, while analysts expected a smaller 0.25% cut.

It was the first decision of its kind since 2020, and puts an ending to the latest cycle of policy tightening, which started in March 2022.

The Fed expects a similar rate cut by the end of 2024, and a 1% rate cut during 2025, followed by a 0.5% cut in 2026.

On trading, Dow Jones fell 0.3% as of 15:18 GMT, or 115 points to 41,904, while S&P 500 fell 0.6%, or 36 points to 5677, as NASDAQ lost 0.8%, or 156 points to 17,857.