Brazil raises key interest rate as labour market strengthens

Brazil raises key interest rate as labour market strengthens

US stocks closed lower, even as the Federal Reserve lowered interest rates by an extra-large 0.5 percentage points as inflation cooled and the labour market softened.

The S&P 500 and the Nasdaq Composite both fell 0.3 per cent. Every sector in the S&P except energy fell, and four of the Magnificent Seven tech groups declined.

The release of the Fed decision, which had captured the attention of market participants for weeks, could allow investors to refocus on the quality of equities, rather than the macroeconomic factors that can affect performance.

Treasuries sold off on the day. The 10-year bond yield rose 0.06 percentage points to 3.7 per cent.