US STOCKS-Wall Street mixed after Fed's rate cut, trading choppy

By Abigail Summerville and Purvi Agarwal

Sept 17 (Reuters) - The S&P 500 briefly rose while the Nasdaq slipped in choppy trading on Wednesday, after the U.S. Federal Reserve cut interest rates by an expected 25 basis points.

The central bank indicated it will steadily cut rates for the rest of the year, with projections showing two more quarter-percentage-point cuts, as policymakers signaled concerns about weakness in the labor market.

Federal Reserve Chair Jerome Powell will speak at a press conference at 2:30 p.m. ET, when investors will listen for details on the direction of monetary policy.

This rate cut was already priced in by investors, according to data compiled by LSEG. The Dow Jones Industrial Average was already in positive territory, where it remained after the Fed's move.

“A majority of the FOMC is now targeting two further cuts this year, indicating that the doves on the committee are now in the driver’s seat. We think it would take a significant upside surprise in inflation or labor market rebound to take the Fed off its current easing trajectory," said Simon Dangoor, Head of Fixed Income Macro Strategies at Goldman Sachs Asset Management.

At 2:05 p.m. ET, the Dow Jones Industrial Average .DJI rose 437.93 points, or 0.96%, to 46,195.83, the S&P 500 .SPX gained 8.47 points, or 0.13%, to 6,615.23 and the Nasdaq Composite .IXIC lost 50.93 points, or 0.22%, to 22,284.13.

The Fed's decision and outlook will test Wall Street's recent rally, which has been supported by the rate-cut expectations and revived enthusiasm around AI-stock-linked trading.

Concerns about the central bank's independence seem to have eased a little, with economic adviser Stephen Miran sworn in as a Fed Governor on Tuesday and an appeals court rejecting U.S. President Donald Trump's attempt to sack Governor Lisa Cook.

Advancing issues outnumbered decliners by a 3.09-to-1 ratio on the NYSE and by a 2.28-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and one new low while the Nasdaq Composite recorded 103 new highs and 33 new lows.