As Fed signals 2 more rate cuts this year - here's what investors should take note, according to analysts

Federal Reserve cut rates by 25 basis points, marking the first rate reduction in 2025, and signaled two additional cuts expected later this year, potentially bringing the benchmark rate to between 3.5% and 3.75% by December. Analysts highlight that the Feds dovish stance has sparked optimism on Wall Street, with S&P 500 targets being raised amid a strong corporate earnings backdrop and an AI investment boom fueling growth. The Fed also raised its GDP growth forecast for 2025 slightly to around 1.6%, reflecting expectations that rate cuts will help the economy, although inflation remains above target.