MARKET SNAPSHOT

U.S. stocks ended lower, after initial gains on the Federal Reserve's 50 basis-point rate cut. Treasury yields recovered from a post-Fed announcement tumble and settled higher, amid easing concerns that policymakers could be bracing for a downturn. Oil futures settled lower despite a slight lift from the rate cut. Gold prices settled higher, as the dollar was little changed.

MARKET WRAPS

EQUITIES

U.S. stocks finished lower after the Federal Reserve voted to cut interest rates by 0.5 percentage point, opting for a more aggressive reduction than investors had been expecting just a week ago.

The rate cut is "a welcome development" and should put the stock market on good footing going forward, said Yung-Yu Ma, chief investment officer at BMO Wealth Management.

Unlike previous years when the Fed has cut rates, "the primary problem in the economy is actually short-term interest rates being too high, so by the Fed cutting rates, it's actually directly solving the problem," he added.

The S&P 500, the Dow and the Nasdaq Composite rose after the Fed's announcement, then pared those gains and turned negative. As of the close, the Dow dropped almost 0.3%, while the Nasdaq Composite Index and S&P 500 retreated 0.3%.

Earlier Tuesday, Chinese shares closed mixed. Investor sentiment remains weighed by China's disappointing economic data over the weekend as the market returned after a two-day holiday.

The benchmark Shanghai Composite Index added 0.5% after briefly dipping below the key 2700 level at midday. The Shenzhen Composite Index fell 0.2% and the ChiNext Price Index declined 0.1%.

Japan's Nikkei Stock Average trimmed early gains to close 0.5% higher as investors turned somewhat cautious before the FOMC decision due later in the day.

Australia's S&P/ASX 200 rose less than 0.1% as gains among financial, utility and energy stocks were eroded by weakness in iron-ore miners.

New Zealand's NZX-50 shed 0.7% as shares of utility providers contributed to a third consecutive loss.

Markets in Hong Kong were closed for the Mid-Autumn Festival.

COMMODITIES

Oil futures pared losses after the Fed's half-point rate cut, a move that some see as likely to help demand for crude.

West Texas Intermediate settled down 0.4% to settle at $70.91 a barrel. Brent crude slipped 0.1% to $73.65 a barrel.

"Speculators re-entered the short side of this market with little apparent concern over the Fed rate decision in sending off some additional bearish signals suggestive of a market poised to trend lower, " Ritterbusch said.

Front month Comex gold for September delivery gained over 0.25% to $2570.70.

TODAY'S TOP HEADLINES

Fed Cuts Rates by Half Percentage Point

The Federal Reserve voted to lower interest rates by a half percentage point, opting for a bolder start in making its first reduction since 2020. The long-anticipated pivot followed an all-out fight against inflation the central bank launched two years ago.

Eleven of 12 Fed voters backed the cut, which will bring the benchmark federal-funds rate to a range between 4.75% and 5%. Quarterly projections released Wednesday showed a narrow majority of officials penciled in cuts that would lower rates by at least a quarter point each at meetings in November and December.

U.S. Importers Are Pulling in Goods Early as Possible Port Strike Draws Closer

U.S. importers are rushing in millions of dollars' worth of electronics, holiday goods and industrial materials to get ahead of a possible strike by dockworkers in less than two weeks that threatens to lock down major ports and hammer the American economy.

The drive has gained urgency as a walkout by 45,000 dockworkers at ports from Maine to Texas has grown more likely, swamping West Coast ports with big cargo volumes as companies redraw their supply chains to get away from the looming labor turmoil.

Boeing Furloughs White-Collar Workers as Strike Worsens Cash Crunch

Boeing is furloughing tens of thousands of white-collar employees in an effort to cut costs and avoid a credit-ratings cut amid a strike by its largest union.

The jet maker will furlough affected employees for one week out of every four weeks for the duration of the walkout, Chief Executive Kelly Ortberg wrote in a memo to employees Wednesday.

The strike, which has halted production of the 737 and other jets, could cost the manufacturer some $500 million a week, according to one analyst estimate. The company's operations had been burning about $1 billion a month before the strike. Credit-ratings firms warned they may downgrade Boeing if the strike drags on. Ratings firms Moody's and Fitch both rate Boeing one notch above junk status.

Nippon Steel Gets More Time for U.S. Steel Deal Review

A national-security ruling on Nippon Steel's planned acquisition of U.S. Steel may not come until after the November election, as the companies resubmit the embattled deal for consideration.

The Committee on Foreign Investment in the U.S. is granting the companies' request to refile an application for a national security review of the $14.1 billion deal, people familiar with the matter said. The move effectively provides as much as 90 days for the companies and committee to consider questions about steel availability and potential production disruptions.

The companies have been battling opposition to their deal in the White House and on the presidential campaign trail. President Biden has said that U.S. Steel, a century-old pillar of American industry, should remain domestically owned and operated. Former President Donald Trump has vowed to block the deal if he wins election, and Vice President Kamala Harris earlier this month echoed Biden's position.

23andMe Board Resigns in New Blow to DNA-Testing Company

All seven independent directors of DNA-testing company 23andMe resigned Tuesday, following a protracted negotiation with founder and Chief Executive Anne Wojcicki over her plan to take the company private.

It is the latest challenge for 23andMe, which has struggled to find a profitable business model. The stock price rose a penny on Tuesday to $0.35 per share. At that price, 23andMe's valuation is just $7 million more than the cash on its balance sheet. That represents a 99.9% decline from its $6 billion peak valuation just after going public in 2021.

In a letter addressed to Wojcicki, the directors wrote that "after months of work, we have yet to receive from you a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders."