Stocks fell and bond yields rose after the Federal Reserve lowered its key interest rate for the first time in a decade but left investors feeling uncertain about the likelihood of further cuts.
The quarter-point cut announced Wednesday was widely expected. What wasn’t: Powell’s said during a news conference that the central bank was not intending to embark on a long cycle of cutting rates.
On Wednesday:
The S&P 500 index dropped 32.80 points, or 1.1%, to 2,980.38.
The Dow Jones Industrial Average lost 333.75 points, or 1.2%, to 26,864.27.
The Nasdaq composite fell 98.19 points, or 1.2%, to 8,175.42.
The Russell 2000 index of smaller companies slid 10.99 points, or 0.7%, to 1,574.61.
For the week:
The S&P 500 is down 45.48 points, or 1.5%.
The Dow is down 328.18 points, or 1.2%.
The Nasdaq is down 154.79 points, or 1.9%.
The Russell 2000 down 4.36 points, or 0.3%.
For the year:
The S&P 500 is up 473.53 points, or 18.9%.
The Dow is up 3,536.81 points, or 15.2%.
The Nasdaq is up 1,540.14 points, or 23.2%.
The Russell 2000 is up 226.05 points, or 16.8%.
