CNBC Daily Open: Markets need time to digest the 50-point cut

A jumbo-sized 50-point cut 
The U.S. Federal Reserve slashed rates by fractional a percent point, bringing the national funds complaint to 4.75%–5%. Federal Open Market Committee members spot the complaint falling to 4.25%–4.5% by the extremity of this year, meaning another half-point cut earlier 2025. Members besides raised their estimation of the unemployment complaint this twelvemonth to 4.4% from the 4% projected successful June. 

Rate chopped didn't boost markets 
U.S. markets popped connected the Fed's 50-point chopped but couldn't support their gains. On Wednesday, the S&P mislaid 0.29%, the Dow fell 0.25% and the Nasdaq dipped 0.31%. Asia-Pacific markets, however, traded higher Thursday. Hong Kong's Hang Seng index climbed astir 1.8% arsenic the metropolis lowered its involvement complaint by

Presidential prediction 
U.S. Vice President Kamala Harris is much apt to win the statesmanlike predetermination than erstwhile President Donald Trump, according to a CNBC survey. Out of the 27 respondents, who comprise concern strategists, economists and money managers, 48% deliberation Harris has a greater accidental of winning, 41% deliberation it's Trump, portion 11% are unsure. 

Treading the mediate path 
Bridgewater Associates Founder Ray Dalio told CNBC the upcoming U.S. statesmanlike predetermination would beryllium "the most consequential election of [his] lifetime," and "neither [candidate] is what the state needs." Separately, Dalio said the system "is successful relative equilibrium," but the Fed indispensable bash a "balancing act" of keeping involvement rates neither excessively precocious nor low. 

[PRO] Best-performing stocks aft a cut 
The Fed's half-point chopped is apt to little yields connected Treasurys, which would punctual investors chasing returns to rotate into riskier assets similar equities. But immoderate stocks are much rate-sensitive than others. CNBC Pro screened stocks to find the top-10 names acceptable to summation the most pursuing a complaint cut. 

The futures marketplace was right.  

Just earlier the Fed meeting, it was pricing successful a 64% accidental of a 50-basis-points cut, according to the CME FedWatch tool. By contrast, the prevailing sentiment among experts was that a 25-point chopped was much likely, according to a CNBC survey. 

Such predictions tin beryllium seen arsenic a wholly disinterested affair. That is, the forecast is based connected an nonsubjective information of the authorities of the economy, balanced against the hazard of inflation. 

Those predictions tin besides explicit hope, which tin embody a tendency without having grounds to backmost it up.  

And erstwhile that anticipation is fulfilled, markets tin person a infinitesimal of panic. 

After touching grounds highs arsenic the Fed's jumbo-sized chopped was announced, the S&P 500 and Dow Jones Industrial Average ended the time successful the red. So did the Nasdaq Composite.  

It's hard to recognize what happened there, since markets are truthful driven by sentiment that sometimes defy mentation oregon evidence. 

That mightiness person been astatine the backmost of Fed Chair Jerome Powell's head. And helium was apt alert that a bigger-than-usual chopped mightiness connote that the Fed's disquieted astir the economy.  

So, Powell spent a large information of the post-meeting property league massaging sentiment. 

"I don't spot thing successful the system close present that suggests that the likelihood of a recession, sorry, of a downturn, is elevated," Powell said.  

Why, then, did the Fed determine not to permission cuts astatine 25 ground points? 

As if anticipating worries, Powell said successful his opening connection that the determination marked a "recalibration" of policy. In different words, the Fed's jumbo chopped is simply a motion the cardinal slope is taking the pb successful charting monetary policy, and not reacting belatedly to economical conditions. 

Investors volition instrumentality immoderate clip to digest Powell's assurances. Markets, aft all, are mostly irrational creatures, and volition respond instinctively astatine archetypal lawsuit of immoderate large news.  

– CNBC's Jeff Cox, Yun Li, Hakyung Kim and Samantha Subin contributed to this story.