Stock markets spiked and then immediately reversed course after the Federal Reserve lowered the federal funds rate by a quarter percentage point to 4% from 4.25% on Wednesday in a move that had been telegraphed for weeks leading up to the meeting. Newly sworn in Federal Reserve Governor Stephen I. Miran voted against the action, in favor of a steeper cut of half a percentage point, the Fed disclosed in its monetary policy update. Miran was the only member to dissent.
Stock markets, which have been at all-time highs, rose in response to the decision to cut rates by 25 basis points, but dropped down soon after. The S&P 500 closed down 0.1%, the Nasdaq closed down .33%, and the Dow Jones Industrial Average closed up 0.57%. The Russell 2000, which includes smaller-cap stocks, rose 0.26%. Gold prices jumped to $3,704 an ounce before sinking back to $3,665.
