Materials stocks rise after Federal Reserve cuts interest rates

Materials stocks increased after the Federal Reserve cut its benchmark interest rate by 0.25% to a range of 4.5% to 4.75%. This decision aims to support the labor market as inflation shows signs of easing. During a press conference, Fed Chair Jerome Powell expressed confidence in the economy, describing it as a "Goldilocks economy" with balanced growth and inflation. He noted that the labor market remains strong, despite some recent inflation data being higher than expected. The Fed's rate cut marks a shift from the previous trend of rising rates over the past two and a half years. Officials believe the current rates are still high enough to manage economic activity effectively.