US stocks end mixed following Fed's decision to cut rates

Major U.S. stock indexes closed mostly higher Wednesday after the Federal Reserve cut its benchmark interest rate for a second time this year, citing slowing global economic growth and uncertainty over U.S. trade conflicts.

Gains in banks, utilities and technology companies outweighed losses elsewhere in the market, which had been broadly lower until the last hour of trading. Bond yields moved lower.

Stocks initially declined after the central bank announced the widely expected rate cut. Its policy statement failed to indicate whether more rate cuts were likely this year, though the central bank left the door open for additional rate cuts if the economy weakens.

"We're not on a preset course," Fed Chairman Jerome Powell said in an afternoon press conference.

Even so, diverging opinions within the members of the Fed's policymaking committee left some investors feeling uneasy about what the Fed may do next.

"The (Fed) cut rates, as expected, but the quantity and necessity of future rate cuts were called into question," Sam Stovall, chief investment strategist at CFRA, wrote in a research note.

The S&P 500 index inched 1.03 points higher, or less than 0.1%, to 3,006.73. The benchmark index is now within 0.7% of its all-time high set in July.

The Dow Jones Industrial Average rebounded after being down most of the day, adding 36.28 points, or 0.1%, to 27,147.08. The Nasdaq slid 8.62 points, or 0.1%, to 8,177.39.

The Russell 2000 index of smaller company stocks bore the brunt of the selling, dropping 9.95 points, or 0.6%, to 1,568.34.

The Fed is trying to combat threats to the U.S. economy, including uncertainties caused by President Donald Trump's trade war with China, slower global growth and a slump in American manufacturing.

Investors largely expected the Fed to...