NEW YORK (CNNfn) - U.S. stocks fell Wednesday afternoon after the Federal Reserve disappointed some investors with its smallest interest rate cut of the year.|
At 2:50 pm. ET, the Dow Jones industrial average slid 29.99 points to 10,442.49, after being up about 31 points before the 2:15 p.m. announcement. The Nasdaq composite index shed 4.30 to 2,060.32. It had been about 12 points higher ahead of the move.
In the Fed's sixth rate cut of the year, the central bank lowered the rate that banks charge each other for overnight loans to 3.75 percent from 4 percent, surprising some economists who expected a larger cut. The more symbolic discount rate was cut to 3.25 percent from 3.5 percent.
Wednesday's decision drew conflicting forecasts from analysts, who were uncertain about just how much lower interest rates needed to go to keep the economy from recession.