The US Federal Reserve lowered its benchmark rate by 25 basis points to 4%-4.25% on Wednesday, its first cut since December. Policymakers signaled the potential for two additional reductions this year but stressed a data-dependent, meeting-by-meeting approach. The market response was muted, with the Nasdaq and S&P 500 ending lower and Treasury yields rising.

The dollar has surged against major currencies after the Federal Reserve's policy outlook was interpreted as less dovish than expected. The Bloomberg Dollar Spot Index rose as much as 0.4%, the biggest intraday gain in two weeks, as investors reduced bets on future interest-rate cuts.

The credit futures market is gaining traction among investors, with US contracts nearing $2.5 billion in open interest, according to a Crisil Coalition Greenwich study. The study finds that 85% of US, UK, and European credit investors are aware of credit futures and see them as beneficial for tactical asset allocation and hedging.

Macquarie Group and Carlyle Group held talks about a potential acquisition that could have created a global investment giant with more than $1 trillion in assets under management, sources say. The talks reportedly ended as Carlyle CEO Harvey Schwartz's turnaround plan gained traction with investors.

The Securities and Exchange Commission will allow public companies to block shareholders from filing class-action lawsuits, instead requiring arbitration of claims. The move is part of a broader effort to ease compliance requirements and attract more initial public offerings. The policy change has drawn criticism from investor advocacy groups and Democrats, who argue that it could reduce transparency and put investors at a disadvantage.

The Securities and Exchange Commission and the Commodity Futures Trading Commission have extended for a third time the compliance date for Form PF amendments, giving private fund advisers another year to comply with expanded reporting requirements. SEC Chair Paul Atkins has asked staff to consider reducing the number of advisers required to file Form PF, and Brian Daly, director of the SEC's Investment Management Division, says the agency needs more time to review amendments and consider changes.

Democratic leaders have introduced a funding bill to address the government shutdown threat, extending Affordable Care Act subsidies and reversing Medicaid cuts. The bill also restricts President Donald Trump's ability to reallocate funds without congressional approval. House Republicans had previously proposed a bill to extend the funding deadline, which they want a vote on by Friday.