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US stocks close mixed as Fed cuts interest rates

September 19, 2019 11:58 AM

NEW YORK:US equities ended mixed after the Federal Reserve cut interest rates for the second time this year.

The Dow Jones Industrial Average on Wednesday rose 36.28 points, or 0.13 per cent, to 27, 147.08. The S&P 500 increased 1.03 points, or 0.03 per cent, to 3, 006.73. The Nasdaq Composite Index fell 8.62 points, or 0.11 per cent, to 8, 177.39, Xinhua reported.

Six of the 11 primary S&P 500 sectors finished higher, with utilities and financials up 0.47 per cent and 0.43 per cent, respectively, outpacing the rest. Energy dropped 0.42 per cent, the worst-performing group.

The US central bank on Wednesday lowered interest rates by 25 basis points amid growing risks and uncertainties stemming from trade tensions and a global economic slowdown, following a rate cut in July that was its first in more than a decade.

"As the Committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, " the Federal Open Market Committee (FOMC), the Fed's rate-setting body, said in a statement after concluding its two-day policy meeting.

The rate-cut move was largely in line with market expectation, however, the Fed failed to signal whether it will cut rates again later this year, disappointing traders, experts noted.

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