(Updates prices to late afternoon)

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Indexes: Dow up 0.61%, S&P 500 up 0.27%, Nasdaq down

0.06%

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Federal Reserve cuts rates by 25 basis points

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GE Vernova ( GEV ) surges after bullish 2026 revenue forecast

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Oracle, Broadcom ( AVGO ) results awaited this week

By Sinéad Carew and Johann M Cherian

Dec 10 (Reuters) - The S&P 500 gained ground on

Wednesday after the Federal Reserve cut interest rates by a

quarter percentage point and signaled that it will likely pause

further reductions in borrowing costs in line with

expectations.

The cut was the result of a divided vote and the central bank

said that it would look ahead for clearer signals about the

direction of the job market and inflation that "remains somewhat

elevated."

However, projections after the Fed's two-day meeting showed

median expectations for another one quarter-percentage-point cut

in 2026 were in line with expectations in September.

And policymakers raised their expectations for 2026 GDP growth

to 2.3% from 1.8% in September and maintained an estimate for

unemployment at the end of next year at 4.4%.

The projections and the lack of an overly hawkish tone from

the statement appeared to draw investors into the equity market.

"When the Fed is cutting rates and the economy is not headed

into an imminent downturn or recession, markets tend to like

that backdrop," said Mona Mahajan, head of investment strategy

at Edward Jones in New York.

At 2:22 p.m. the Dow Jones Industrial Average

rose 291.17 points, or 0.61%, to 47,851.46, the S&P 500

gained 18.32 points, or 0.27%, to 6,858.83 and the Nasdaq

Composite lost 14.20 points, or 0.06%, to 23,562.29.

The market had been muted ahead of the statement as investors,

while widely expecting a cut, were concerned that the Fed would

take a more hawkish tone on the policy outlook.

Traders will monitor Fed Chair Jerome Powell's press

conference for clues on his expectations for the next meetings

as the central bank battles still-elevated inflation alongside

some weakening labor market signals.

After the statement, traders were pricing in a 78% chance

the Fed would hold rates steady in January, according to the

latest data from LSEG.

Among the S&P 500's 11 major industry sectors most were

advancing. Technology and communications services

were the biggest losers. Industrials was the

biggest gainer.

In individual stocks, energy equipment manufacturer GE Vernova ( GEV )

surged more than 15% after forecasting higher revenue in

2026, signaling strong demand for its AI-related infrastructure.

Advancing issues outnumbered decliners by a 1.97-to-1 ratio

on the NYSE where there were 214 new highs and 40 new lows. On

the Nasdaq, 2,851 stocks rose and 1,788 fell as advancing issues

outnumbered decliners by a 1.59-to-1 ratio.

The S&P 500 posted 32 new 52-week highs and 6 new lows while

the Nasdaq Composite recorded 126 new highs and 69 new lows.