Federal Reserve cuts interest rates by half a percentage point, stocks end lower

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Federal Reserve News

Nasdaq Composite,Fed Officials

Investors digested the Fed's first interest rate cut since 2020.

Stocks finished up and down session Wednesday afternoon lower after the Federal Reserve cut interest rates by 0.5% in its first rate reduction since 2020. Additionally, the Fed's latest Summary of Economic Projections showed the majority of Fed officials expect the central bank to cut interest rates by 100 basis points in total this year. Stocks initially rallied following the announcement before paring back gains. The tech-heavy Nasdaq Composite and the the S&P 500 were down about 0.

The significant policy shift was widely expected, given growing signs that the central bank has managed to cool inflation without severe harm to the economy. But investors were still guessing at whether hopes for a 0.5% cut would be fulfilled or if the historic pattern of 0.25% moves would repeat itself.

 

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Stock market today: Federal Reserve cuts interest rates by half a percentage point, stocks riseInvestors digested the Fed's first interest rate cut since 2020.
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