Stocks Turn Lower After Fed Cuts Rates

The FOMC cut the fed funds target by 50 basis points to 1%, saying the pace of U.S. economic activity "appears to have slowed markedly"

Major U.S. stock indexes, which enjoyed an afternoon rally following the Federal Reserve's decision to cut the benchmark U.S. interest rate by 50 basis points to 1.0%, turned lower in the final minutes of trading Wednesday. Investors might have been spooked by the Fed's statement, which said the pace of U.S. economic activity "appears to have slowed markedly" mainly because of a decline in consumer spending. Other investors might have been cashing in their gains.

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