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* Indexes: Dow -0.28%, S&P 500 -0.40%, Nasdaq -0.71%
(Updates with market reaction to Fed policy decision)
By Noel Randewich
Sept 18 (Reuters) - U.S. stocks extended losses on Wednesday
after the Federal Reserve cut interest rates by a quarter of a
percentage point in a widely expected move, but gave mixed
signals about what may happen next.
With continued economic growth and strong hiring "the most
likely outcomes," the Fed nevertheless cited "uncertainties"
about the outlook and pledged to "act as appropriate" to sustain
the expansion. Expectations of lower rates have supported Wall Street's
rally this year, with the benchmark S&P 500 .SPX now about 1%
below its record high close in July.
At 2:03 p.m. ET, the Dow Jones Industrial Average .DJI
was down 0.28% at 27,035.09 points, while the S&P 500 .SPX
lost 0.40% to 2,993.59.
The Nasdaq Composite .IXIC dropped 0.71% to 8,128.16.
Ahead of the Fed's announcement, the S&P 500 had been down
about 0.3%.
Ten of the 11 major S&P sectors were in the red.
Earlier in the day, the central bank injected more cash into
the banking system as the key interest rate pierced above its
targeted range for the first time since the financial crisis.
That puts pressure on policymakers to come up with long-term
fixes for the funding squeeze.