The benchmark S&P 500 closed down 0.29%, at 5,618.26, the Dow Jones Industrial Average closed down 0.25%, at 41,503.10, and the Nasdaq Composite skidded 0.31%, to close at 17,573.30

Major stock indexes closed with modest losses and the dollar rose in choppy trading on Wednesday after the U.S. Fed opted for a supersized cut in its first move to borrowing costs in more than four years.

The central bank cut the overnight rate by half a percentage point, more than the quarter-point that is customary for adjustments, citing greater confidence that inflation will keep declining to its 2% annual target.

That rate, which guides how much interest banks pay each other and impacts rates for consumers, is now 4.75%-5.00%, the lower end of the range markets had been expecting.

The benchmark S&P 500 gained 1% after the announcement before pulling back to close down 0.29% at 5,618.26.

It is important to note that stocks are not rocketing ahead (at least not yet) after getting what they wanted. After seven straight up days, a lot of good news was priced in, according to Steve Sosnick, chief market strategist at Interactive Brokers.

The Dow Jones Industrial Average (DJIA) closed down 0.25%, at 41,503.10, and the Nasdaq Composite skidded 0.31%, to close at 17,573.30.

Rates had been set at their highest levels in more than two decades since July 2023.

MSCI’s index of world stocks advanced to a record high during the session before declining. It was last down 0.29% at 826.29.

The dollar index weakened after the announcement before gaining 0.07% to 100.98.

In the market for U.S. government debt, yields on rate-sensitive 2-year Treasuries, added 3.8 bps to 3.6297%, from 3.592% late on Tuesday.

The yield on benchmark 10-year notes gained 6.6 bps to 3.708%, from 3.642% late on Tuesday.