US close: Stocks mixed as Fed delivers second rate cut of the year

(Sharecast News) - Major indices turned in a mixed performance on Wednesday as market participants digested the Federal Reserve's interest rate decision.

At the close, the Dow Jones Industrial Average was down 0.16% at 47,632.00, while the S&P 500 was flat at 6,890.59 and the Nasdaq Composite saw out the session 0.55% firmer at 23,958.47.

The Dow closed 74.37 points lower on Wednesday, taking a bite out of gains recorded in the previous session.

Wednesday's primary focus was the Federal Reserve's interest rate decision, with the central bank approving a second consecutive interest rate cut, lowering its benchmark borrowing rate by 25 basis points to a range of 3.75%-4.00%, though chair Jerome Powell unsettled markets by signalling uncertainty over a further move in December.

The decision was backed by a 10-2 vote from the Federal Open Market Committee, with Governor Stephen Miran favouring a larger half-point cut and Kansas City Fed President Jeffrey Schmid preferring no change. The Fed also said it would end its quantitative tightening programme on 1 December.

While policymakers had previously indicated the potential for three cuts in 2025, Wednesday's statement offered no guidance on the December meeting. Powell cautioned against assuming another reduction was guaranteed, despite market expectations for further easing amid signs of labour market softness and slowing growth.

Attention was also on a flurry of earnings from the so-called "Magnificent Seven" this week, with Alphabet trading higher in after hours action after revealing quarterly revenues had topped $100bn for the first time, while Meta Platforms traded lower on the back of a warning that expenses would be significantly higher in 2026 than this year, and Microsoft topped Q1 earnings estimates, boosted by solid cloud revenues.

Elsewhere in the corporate space, Boeing reported higher revenue over last year when production was constrained after a safety crisis and amid a labor strike, while Caterpillar said third-quarter revenue rose to $17.64bn, but stated profits had taken a hit from higher costs.

On the macro front, US mortgage applications surged 7.1% in the week ended 17 October, according to the Mortgage Bankers Association, following four consecutive weekly declines. Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, shot up by 9% week-on-week, while applications to purchase a new home increased 5%. The rebound coincided with a fresh drop in benchmark mortgage rates, which fell to a one-year low of 6.3%, as long-dated Treasury yields came under pressure amid mounting concerns over a weakening labour market and broader signs of economic slowdown.

On another note, US pending homes sales were unexpectedly flat in September, according to the National Association of Realtors, as concerns regarding the labour market kept prospective buyers on the sidelines, despite declining mortgage rates. September's flat reading follows an upwardly revised 4.2% uptick in August. Economists expected contracts to rise 1.0% after a previously reported 4.0% advance in August. Pending home sales dropped 0.9% on an annualised basis.

Meanwhile, trade tensions between the US and China appear to have eased following progress over the weekend, with investors now watching for developments from Donald Trump's upcoming meeting with Chinese President Xi Jinping in South Korea.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Caterpillar Inc. (CAT) $585.49 11.63%

Verizon Communications Inc. (VZ) $40.21 2.26%

Chevron Corp. (CVX) $155.10 0.63%

Apple Inc. (AAPL) $269.70 0.26%

JP Morgan Chase & Co. (JPM) $305.51 0.05%

Cisco Systems Inc. (CSCO) $71.32 0.00%

Microsoft Corp. (MSFT) $538.74 0.00%

Amgen Inc. (AMGN) $292.08 0.00%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Dow Jones - Fallers

Boeing Co. (BA) $213.58 -4.37%

Unitedhealth Group Inc. (UNH) $355.26 -3.42%

Nike Inc. (NKE) $65.35 -3.08%

Coca-Cola Co. (KO) $68.35 -2.58%

Dow Chemical Co. (DOW) $24.86 -2.05%

Home Depot Inc. (HD) $378.04 -2.00%

Procter & Gamble Co. (PG) $148.77 -1.72%

Visa Inc. (V) $341.41 -1.62%

International Business Machines Corporation (CDI) (IBM) $308.21 -1.39%

McDonald's Corp. (MCD) $302.04 -1.32%

S&P 500 - Risers

Flowserve Corp. (FLS) $68.95 30.93%

Seagate Technology Plc (STX) $265.62 19.11%

Western Digital Corp. (WDC) $141.38 13.18%

Centene Corp. (CNC) $37.34 12.50%

Caterpillar Inc. (CAT) $585.49 11.63%

CenturyLink Inc. (LUMN) $11.00 9.45%

Cummins Inc. (CMI) $441.00 6.51%

Cognizant Technology Solutions Corp. (CTSH) $71.68 5.69%

Helmerich & Payne Inc. (HP) $26.40 4.98%

Corning Inc. (GLW) $90.33 4.47%

S&P 500 - Fallers

Fiserv Inc. (FI) $70.60 -44.04%

Verisk Analytics Inc. (VRSK) $208.00 -10.40%

Hormel Foods Corp. (HRL) $21.49 -9.13%

Global Payments Inc. (GPN) $79.19 -7.50%

Fidelity National Information Services Inc. (FIS) $61.47 -6.72%

Alexandria Real Estate Equities Inc. (ARE) $58.76 -6.64%

Automatic Data Processing Inc. (ADP) $261.22 -6.58%

International Paper Co. (IP) $44.12 -6.15%

Adobe Systems Inc. (ADBE) $337.86 -6.13%

PPG Industries Inc. (PPG) $99.25 -5.87%

Nasdaq 100 - Risers

Seagate Technology Plc (STX) $265.62 19.11%

Western Digital Corp. (WDC) $141.38 13.18%

Cognizant Technology Solutions Corp. (CTSH) $71.68 5.69%

Applied Materials Inc. (AMAT) $235.75 3.56%

Lam Research Corp. (LRCX) $160.67 3.25%

Alphabet Inc. Class A (GOOGL) $274.57 2.65%

Alphabet Inc. Class C (GOOG) $275.17 2.51%

KLA-Tencor Corp. (KLAC) $1,235.28 2.42%

Micron Technology Inc. (MU) $226.63 2.13%

Asml Holdings N.V. (ASML) $1,070.84 1.74%

Nasdaq 100 - Fallers

Fiserv Inc. (FI) $70.60 -44.04%

Verisk Analytics Inc. (VRSK) $208.00 -10.40%

Automatic Data Processing Inc. (ADP) $261.22 -6.58%

Adobe Systems Inc. (ADBE) $337.86 -6.13%

Paychex Inc. (PAYX) $117.40 -5.36%

Paypal Holdings Inc (PYPL) $69.68 -4.57%

Autodesk Inc. (ADSK) $297.08 -4.50%

Kraft Heinz Co. (KHC) $24.38 -4.47%

Texas Instruments Inc (TXN) $160.26 -3.98%

Monster Beverage Corp (MNST) $66.56 -3.98%