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Markets Right Now: Stocks sink then recover after Fed cut

NEW YORK (AP) — The latest on developments in financial markets (all times local): 4:00 p.m. Stocks are rebounding at the close of trading, led by banks and big tech names, after the Federal Reserve delivered an expected cut in interest rates.

Stocks initially fell after the Fed announcement, after the Fed showed its members are divided about the upcoming path for interest rates. The Dow Jones Industrial Average dropped as much as 210 points

The rally came as Fed Chairman Jerome Powell said the central bank would be ready to take action if the economy weakened. Apple and Microsoft finished with small gains after falling earlier in the day. JPMorgan rose 1% as banks rose after the Fed announcement.

The Dow rose 36 points, or 0.1%, to 27.147. The S&P gained 1 point to 3,006. But the Nasdaq dropped 8 points, or 0.1%, to 8.177.

2:50 p.m.

Stocks are dropping after the Federal Reserve cuts its benchmark interest rate for a second time this year but didn't provide investors with concrete clues about what the future holds.

The Dow Jones Industrial Average went from a loss of 58 points just before the cut was announced to a loss of 200 points at 2:47 p.m.

The market expected the quarter-point cut to the federal funds rate, which influences many consumer and business loans. But three of the 10 voting officials dissented from the decision, and the Fed looks divided on what to do next. That ambiguity may have displeased investors on Wall Street.

The S&P 500 was down 0.9% to 2,979. Even with the decline, the benchmark index remains within 1.6% of its all-time high set in July.

11:50 a.m.

Stocks are lower at midday on Wall Street Wednesday ahead of the Federal Reserve's latest decision on interest rates.

Investors are expecting a small cut to rates and will be watching for any clues about what the Fed does next.

Bank stocks are falling after the yield on the 10-year Treasury dropped to 1.75% from 1.81%. Bank of America fell 1%.

FedEx dropped 13.8% after the shipping company lowered its profit forecast for the rest of its fiscal year.

The Dow Jones Industrial Average fell 79 points, or 0.3%, to 27,031.

The S&P 500 is down 9 points, or 0.3%, to 2,996. The Nasdaq dropped 29 points, or 0.4%, to 8,156.

Oil is falling for a second straight day. U.S. oil is down 1.6% to $58.39 a barrel

9:45 a.m.

Stocks are opening with modest losses on Wall Street Wednesday ahead of the Federal Reserve's latest decision on interest rates.

Investors are expecting a small cut to rates and will be watching for any clues about what the Fed does next.

Bank stocks are falling after the yield on the 10-year Treasury dropped to 1.77% from 1.81%. Bank of America fell 0.7%.

FedEx dropped 12.7% after the shipping company lowered its profit forecast for the rest of its fiscal year.

The Dow Jones Industrial Average fell 57 points, or 0.2%, to 27,053.

The S&P 500 is down 8 points, or 0.3%, to 2,997. The Nasdaq dropped 22 points, or 0.3%, to 8,163.

Oil is falling for a second straight day. U.S. oil is down 1.7% to $58.31 a barrel.

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