US stocks closed mixed after the Federal Reserve (Fed) cut interest rates by 25 basis points at its FOMC meeting at 2am this morning.
There were signs of continued interest rate cuts for the rest of the year due to concerns about labor market weakness, with the Fed expecting two more quarter-percentage cuts.
In a press conference, Fed Chairman Jerome Powell said that the risk of labor market weakness is now more significant than inflation, but stressed that inflation still needs to be monitored and controlled.
The S&P 500 index fell 0.10% to 6.41 points, the technology-focused Nasdaq fell 0.32% to 72.63 points, while the Dow Jones rose 0.57% to 260.42 points.
The Fed's decision and forecast are expected to test Wall Street's recent gains, which were supported by rate cut expectations and a resurgence in investor interest in artificial intelligence (AI) stocks.
In other news, White House Economic Adviser Stephen Miran was sworn in as Fed Governor, while an appeals court rejected President Donald Trump's bid to remove Fed Governor Lisa Cook.
Meanwhile, Nvidia shares fell 2.6% after a report said China's internet regulator had ordered the country's largest technology company to buy all of its AI chips.
Workday shares jumped 7.2% after a report that activist investor Elliott Management bought a more than $2 billion stake in the human resources software company.
Volume on the US exchange was $18.91 billion, compared with an average of $16.47 billion over the full 20 trading days.
