The US central bank has delivered a widely expected rate cut, with hints of more on the way. Investors are watching markets closely, with jobs data and property profits also in focus.

Markets moved overnight as the US Federal Reserve announced a 25 basis point rate cut. The Dow Jones jumped 260 points, while the Nasdaq and S&P 500 dipped slightly in what Peter Switzer described as a classic “buy the rumour, sell the fact” moment.

The rate cut was supported by 11 of the 12 voting members on the committee. The lone dissenter was Trump-appointed Steve Miron, who pushed for a more aggressive 50 basis point cut—mirroring calls by the former president himself.

More cuts likely this year

Fed Chair Jerome Powell hinted in his post-meeting press conference that two additional rate cuts are possible before the year ends. “The market has to like that kind of thing,” said Switzer, predicting that futures markets—down early—may swing positive as the day progresses.

Meanwhile, attention now turns to upcoming unemployment figures. If the data comes in strong, it may signal underlying inflation pressure. But if job numbers are weak, it could actually be “good for interest rate cuts,” said Switzer—suggesting a softening labour market may prompt the Fed to act faster.