Dow closes up 250 points, S&P 500 inches lower after Fed delivers widely expected rate cut

The Dow Jones Industrial Average closed higher and the S&P 500 was little changed after a volatile day of trading as the Federal Reserve lowered its benchmark rate as expected on Wednesday. Fed Chairman Jerome Powell tempered enthusiasm a bit by signaling the move was not the start of a long rate-lowering cycle.

The broad-market index settled down 0.1% at 6,600.35, while the Nasdaq Composite dropped 0.3% to 22,261.33. The Dow finished up 260.42 points, or 0.6%, at 46,018.32, after earlier hitting an all-time high.

Shares of high-flying tech stocks led the losses following the Fed decision as investors took profits on the bull market winners. Nvidia, Oracle, Palantir and Broadcom each closed lower. On the positive side, stocks that would benefit from lower rates were in the green, boosting the Dow and the broader market. Shares of Walmart, JPMorgan and American Express were higher during the session.

One of the biggest winners of the day was the small cap-focused Russell 2000, which jumped 0.18%. Smaller companies rely more on variable financing and so stand to benefit from lower rates.