Peter Cardillo, chief market economist at Spartan Capital Securities, said he had expected the Federal Reserve to gradually cut interest rates by 25 basis points, but the Fed's actions were more "generous" than he anticipated, particularly their hint at a potential 50-basis-point cut by year-end.

Cardillo believes the Fed's move was clearly dovish, primarily driven by concerns over a weakening labor market. Although US stock markets initially reacted positively to the news, Cardillo pointed out that market sentiment might shift in the coming days, with investors potentially becoming apprehensive about the economic outlook.