Peter Cardiro, Chief Market Economist at Sparta Capital Securities, said he had originally expected the Federal Reserve to gradually cut interest rates by 25 basis points, but the Fed's actions were "more generous" than he anticipated, especially as they have hinted at potentially another 50 basis point cut before year-end.

Cardiro believes the Fed's move clearly leans dovish, primarily driven by concerns over a softening labor market. Although the stock market initially reacted positively to the news, Cardiro points out that market sentiment may shift in the coming days, with investors potentially becoming concerned about the economic outlook.