The S&P 500 index falls sharply after the Fed cut rates by 25 basis points but raised its inflation forecast.

The Fed reduced the forecast from 3 to 2 reduced rates in 2025 and raised inflation expectations from 2.1% to 2.5%.

In other words, the Fed is saying that inflation is back, and the rate cut will be smaller than planned.

Ps: if nothing changes, of course