The Federal Reserve has announced a dramatic 50 basis point cut to interest rates, bringing the federal funds rate to a range of 4.75% to 5.00%. This aggressive move, the first reduction since March 2020, signals growing concerns about labor market weakness.

While the cut aligns with market expectations, investors are advised to await Federal Reserve Chair Jerome Powell's press conference at 2:30 PM ET for crucial insights into the Fed's economic outlook and future rate path.