A still-anxious Wall Street closed lower today, sacrificing the advance it made after the Federal Reserve cut interest rates half a percentage...
NEW YORK — A still-anxious Wall Street closed lower today, sacrificing the advance it made after the Federal Reserve cut interest rates half a percentage point and indicated that more rate reductions are possible. Investors collected profits after nearly three sessions of big gains, unwilling to leave money on the table amid ongoing economic uncertainty.
The Dow Jones industrial average, up as much as 200 points after the Fed’s rate announcement, closed the session down 37.47 at 12,442.83.
Microsoft, one of the 30 Dow stocks, fell 40 cents to close at $32.20 a share. Boeing, also a Dow stock, soared $1.88 to $82.84 after reporting good fourth-quarter results.
Broader indexes were also lower. The Standard & Poor’s 500 index fell 6.49 to 1,335.81, and the Nasdaq composite declined 9.06 to 2,349.00.
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It wasn’t surprising that the market pulled back, having been pounded by months of losses and having seen the Dow Jones industrials rise more than 470 points so far this week before the late-day downturn began.
With key reports on the job market and manufacturing set to arrive Friday, investors’ concerns about the state of the economy have not let up yet.
“You need this (the rate cut) and some good news — like the durable goods number that we saw earlier this week — that the economy’s not going to be as bad as people think,” Scott Wren, equity strategist for A.G. Edwards & Sons. On Tuesday, the Commerce Department said orders for big-ticket items rose 5.2 percent in December, the widest jump in five months.