FOMC cut rates by 50 bps on Wednesday, although the Dot Plot suggests a more gradual easing cycle going forward. After initially lowering its expectations following the decision, the market is now factoring in an additional 75 basis points of rate cuts by the end of the year.

By Saqib Iqbal Ahmed, Suzanne McGee and Carolina Mandl NEW YORK (Reuters) -An initial muted market reaction following the Federal Reserve’s first rate cut in four years gave way to a surge in U.S. stocks as uncertainty ebbed and investors digested the implications of easing monetary policy.

Wall Street stocks rose early Thursday as the market continued digesting the Federal Reserve's interest rate cut, which was larger than some analysts had expected.