Stocks fall sharply after the Fed's first rate cut in more than 10 years
- The S&P 500 fell as much 1.8% after the Federal Reserve cut its benchmark interest rate for the first time since the financial crisis.
- The Fed lowered rates a quarter point to a range of 2% to 2.25%.
- Chairman Jerome Powell said the cut was a "mid-cycle adjustment," suggesting the decision may not be followed by other cuts in the future.
- For more stories, go to Business Insider SA.
US stocks dropped by as much as 1.8% on Wednesday after the Federal Reserve decided to lower interest rates for the first time since the financial crisis.
Here's a look at the major indexes after the announcement, as of 3:23 p.m. ET:
- The S&P 500 fell by 0.70%, to 2,992.19
- The Dow Jones Industrial Average fell by 0.87%, to 26,952.53
- The Nasdaq Composite fell by 0.63% to 8,221.54
The Fed cut the benchmark lending rate by 25 basis points to a range of 2% to 2.25%. The central bank pointed to "muted inflation" and "implications of global development for the economic outlook" as the reasons for the cut.
After a muted reaction to the initial rate-cut announcement, stock dove sharply after Chairman Jerome Powell called the rate move a "mid-cycle adjustment," indicating there may not be other cuts in the future. He later walked back those remarks, clarifying that there's still a chance of further easing, which pared losses.
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