The Federal Reserve cut interest rates despite inflation being at a 16-month high, sparking debate about the timing and impact of this decision. Meanwhile, the European Central Bank maintained current rates at 2%, compared to the Fed's 4% level, creating a notable divergence among central banks.

Market watchers noted an unusual strengthening of the dollar following the rate cut, contrary to typical currency behavior during easing cycles. This divergence in monetary policy could drive currency volatility in coming months.

Big tech earnings continue with Amazon and Apple reporting tonight. Previous results from the "Magnificent Seven" have been mostly disappointing, with Google being the only standout performer. Market breadth remains weak with only 44% of S&P 500 stocks trading above their 50-day moving average and just 43 stocks at 52-week highs.