US stocks close slightly lower, trade choppy after Fed rate cut
U.S. stocks closed with modest losses on Wednesday, well off their intraday highs, after the Federal Reserve cut interest rates by 50 basis points, the high side of estimates for its first cut in more than four years.
Trading was choppy. Prior to the Fed announcement, the S&P 500 oscillated between modest gains and losses. The benchmark index rose as much as 1% after the announcement before paring gains and finally closing lower. The Dow and S&P 500 hit intraday highs before weakening.
Citing a «greater confidence» that inflation was moving toward the central bank's 2% target, the
Fed cut rates by half a percentage point, as it now focuses on keeping the labor market healthy.
«The Fed ended the pause with a bang. It's a strong signal that they cut by 50 basis points and expect another 50 basis points of cuts this year,» said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.
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