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US-STOCKS-MARKETS
US stocks post a split finish as Fed delivers a rate cut
NEW YORK, Sept 19, 2019 (BSS/AFP) – The benchmark Dow Jones Industrial
Average erased a 200-point drop on Wednesday, leading Wall Street to a split
finish as the Federal Reserve delivered another interest rate cut.
As expected, the Fed cut interest rates by a quarter of a percentage point
but cast some doubt on the need for future stimulus, highlighting recent
signs of strength in the economy.
But in addressing reporters, Fed Chairman Jerome Powell later reiterated
that the central bank was poised to lower rates further if the economy began
to weaken.
After spending most of the day in the red, the Dow posted a modest 0.1
percent gain, closing at 27,147.12.
The S&P 500 ended flat at 3,006.71 and, while also well off the session’s
low point, the tech-heavy Nasdaq was 0.1 percent lower at 8,177.39.
“The market sold off on the fact that the Fed did what they were expected
to do and no more,” Peter Cardillo of Spartan Capital told AFP.
“Powell handled himself very well during the Q&A. He was very consistent.
The market is relieved at that.”
But, after a two-day meeting, the Fed’s concluding statement showed
mounting divisions among policymakers, with one member favoring an even
deeper cut and two opposing any decrease at all.
Among individual companies, FedEx posted its worst day since the financial
crisis, plunging 12.9 percent after cutting its earnings guidance on a weaker
global outlook and trade fears.
BSS/AFP/HR/1000