US open: Dow extends gains as Fed trims rates, Nasdaq slips

(Sharecast News) - Wall Street trading got off to a mixed start on Thursday after major indices chalked up solid gains following the Federal Reserve's decision to cut interest rates by 0.25%.

As of 1510 GMT, the Dow Jones Industrial Average was up 0.49% at 48,292.08, while the S&P 500 shed 0.48% to 6,853.52 and the Nasdaq Composite came out of the gate 1.02% lower at 23,413.67.

The Dow opened 234.33 points higher on Thursday, extending gains recorded in the previous session after the Federal Open Market Committee, in its final meeting of 2025, voted 9-3 in favour of a rate cut, with the Federal Funds Rate being trimmed by 25 basis points to a range of 3.5% to 3.75%.

The decision was in line with analysts' expectations and similar to moves made in September and October, marking the sixth rate cut since September 2024 to bring borrowing costs to their lowest since 2022.

However, the scope of the dissent among policymakers was stark, with Austan Goolsbee and Jeff Schmid voting for no change to rates, while Trump-appointed Stephen Miran called for a 50bp reduction - marking the first time since 2019 that three FOMC members dissented.

The central bank also hinted at a slower pace of rate cuts going forward, with Fed chair Jerome Powell stating the central bank was "well positioned to wait and see how the economy evolves" as he noted that Donald Trump's so-called 'reciprocal' tariffs had been a driver of inflation.

On the macro front, Americans lined up for unemployment benefits at an accelerated clip in the week ended 6 December, according to the Department of Labor, more than reversing the prior week's decline. Initial jobless claims rose by 44,000 to 236,000, significantly above market expectations of 220,000. The previous week's level was revised up by 1,000 to 192,000. Continuing claims, on the other hand, fell by 99,000 to 1.83m, while the four-week moving average, which aims to strip out week-to-week volatility, increased by 2,000 to 216,750.

Elsewhere, the US trade deficit narrowed sharply in September, according to the Commerce Department, hitting its smallest level since mid2020, as exports surged. The goods and services gap fell almost 11% monthonmonth to $52.8bn, well below the $63.1bn deficit expected by analysts. Exports climbed 3% to the secondhighest level on record, driven by stronger shipments of nonmonetary gold and pharmaceutical products, while imports rose just 0.6% over the month.

Finally, wholesale inventories rose by 0.5% to $911.5bn in September, according to the Census Bureau, following a revised 0.1% decrease in August and ahead of market expectations for a more modest 0.1% uptick.

In the corporate space, Broadcom, Costco and Lululemon were all slated to report quarterly earnings after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Dowdupont Inc. (DWDP) $0.00 0.00%

Walt Disney Co. (DIS) $108.83 0.00%

Dow Jones - Fallers

Intel Corp. (INTC) $39.42 -3.33%

Apple Inc. (AAPL) $274.60 -1.50%

S&P 500 - Risers

LKQ Corporation (LKQ) $30.89 2.30%

eBay Inc. (EBAY) $83.86 1.49%

Verisk Analytics Inc. (VRSK) $217.62 1.47%

Regeneron Pharmaceuticals Inc. (REGN) $735.40 1.27%

Dollar Tree Inc (DLTR) $125.78 1.24%

Automatic Data Processing Inc. (ADP) $262.38 1.17%

Hasbro Inc (HAS) $83.12 1.17%

Intuit Inc. (INTU) $670.14 1.16%

Huntington Bancshares Inc. (HBAN) $17.74 1.00%

Nasdaq Inc (NDAQ) $92.82 0.98%

S&P 500 - Fallers

Lam Research Corp. (LRCX) $161.36 -4.10%

Applied Materials Inc. (AMAT) $263.87 -4.10%

Western Digital Corp. (WDC) $175.85 -3.36%

Intel Corp. (INTC) $39.42 -3.33%

Seagate Technology Plc (STX) $292.50 -2.15%

Synopsys Inc. (SNPS) $466.41 -1.98%

Alphabet Inc. Class A (GOOGL) $315.31 -1.53%

Apple Inc. (AAPL) $274.60 -1.50%

Alphabet Inc. Class C (GOOG) $316.25 -1.48%

Texas Instruments Inc (TXN) $179.99 -0.92%

Nasdaq 100 - Risers

eBay Inc. (EBAY) $83.86 1.49%

Verisk Analytics Inc. (VRSK) $217.62 1.47%

Mercadolibre Inc. (MELI) $1,996.53 1.31%

Regeneron Pharmaceuticals Inc. (REGN) $735.40 1.27%

Dollar Tree Inc (DLTR) $125.78 1.24%

Automatic Data Processing Inc. (ADP) $262.38 1.17%

Hasbro Inc (HAS) $83.12 1.17%

Intuit Inc. (INTU) $670.14 1.16%

Booking Holdings Inc. (BKNG) $5,326.69 0.94%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $604.97 0.72%

Nasdaq 100 - Fallers

Lam Research Corp. (LRCX) $161.36 -4.10%

Applied Materials Inc. (AMAT) $263.87 -4.10%

Western Digital Corp. (WDC) $175.85 -3.36%

Intel Corp. (INTC) $39.42 -3.33%

Seagate Technology Plc (STX) $292.50 -2.15%

Synopsys Inc. (SNPS) $466.41 -1.98%

Alphabet Inc. Class A (GOOGL) $315.31 -1.53%

Apple Inc. (AAPL) $274.60 -1.50%

Alphabet Inc. Class C (GOOG) $316.25 -1.48%

Trip.com Group Limited (TCOM) $69.91 -1.30%