LIVE MARKETS-S&P 500 ends slightly lower after Fed meeting

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S&P 500 ENDS SLIGHTLY LOWER AFTER FED MEETING

The S&P 500 .SPX edged down 0.1% on Wednesday after lots of zig-zagging following the U.S. Federal Reserve interest rate cut - by 25 basis points as was widely expected - and its indications for steady easing of borrowing costs for the rest of the year.

Trading was choppy after the U.S. central bank issued its statement at 2:00 p.m ET (1800 GMT) with the S&P 500 whipsawing between positive and negative territory. The index lost some ground when Fed Chair Jerome Powell started his press conference. About 25 minutes in to the presser, it reversed course again but ultimately couldn't hold its gains to the close.

And it wasn't just stock traders who were uncertain about which direction to turn. Initially, the U.S. dollar index =USD lost ground, falling to its lowest level since February 2022 soon after the announcement while yields on 10-year Treasuries went into reverse, hitting their lowest levels since April. But then, both the dollar and the 10-year yield did an about-face with both turning higher.

Some, including Ronald Temple, chief market strategist at Lazard, were wary of diverging opinions in the outlook for future rate cuts from the so-called "dot plot. "

"Investors should beware of taking the “dot plot” to the bank, as this is clearly an FOMC where the policy path is still unclear and where rising inflation could lead to a very different outlook in the months ahead,” Temple told investors in an emailed comment.

Michael Rosen, chief investment officer at Angeles Investments brought up the dreaded 's' word and said that Powell tempered some of the initial enthusiasm for a more aggressive path of monetary easing.

"He noted the softness in the labor market, but reserves a larger cut for more serious conditions that are not present today. The Fed also raised its inflation forecast, highlighting the delicate balance between setting monetary policy to offset a weaker labor market versus bringing inflation lower," said Rosen.

“The economy is experiencing a mild bout of stagflation: marginally slower growth due partly to restrictive trade and immigration policies, and sticky inflation around 3%," the CIO added. "This is far from the stagflation of the 1970s, but at the margin argues for a more conservative outlook for returns on stocks and bonds."

Among the S&P 500's 11 major sectors just 6 ended the day with gains. The biggest gainer was financials .SPSY, while the biggest loser was technology .SPLRCT.

Here is your closing snapshot:

(Sinéad Carew, Laura Matthews)

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EARLIER ON LIVE MARKETS:

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WHAT'S IN STORE FOR THE DOLLAR ONCE THE FED STARTS CUTTING? CLICK HERE

FIXER-UPPERS: FED DAY HOUSING DATA CLICK HERE

U.S. INDEXES MIXED WITH TECH, DISCRETIONARY DRAGGING CLICK HERE

TESLA'S REBOUND: MUSK’S GRAND VISION AND THE ROAD TO $8.5 TRILLION CLICK HERE

NON-RECESSIONARY RATE CUTS: THE SWEET SPOT FOR GLOBAL MARKETS CLICK HERE

RBC UNPACKS THE LOGIC BEHIND STAPLES SECTOR TURBULENCE CLICK HERE

INTRADAY TACTICS AROUND THE FED DECISION CLICK HERE

CAN THE RALLY IN GOLD BE STOPPED? CLICK HERE

UBS SEES 'LARGE MONEY POOLS' WADING BACK INTO EUROPE CLICK HERE

SAP BOUNCE HELPS TECH, STOXX STEADY CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES STEADY ON FED DAY CLICK HERE

FINALLY, THE FED CLICK HERE