U.S. stocks were mixed late Wednesday as traders digested comments from Federal Reserve Chair Jerome Powell, who signaled that another interest rate cut in December is far from guaranteed. The Dow Jones Industrial Average and S&P 500 edged slightly lower, while the Nasdaq climbed on continued gains

Investors trimmed bets on a December rate cut, now giving it a 71% probability, down from 90% previously. Earlier, markets initially rose following the Fed’s expected quarter-point interest rate cut and its announcement to restart limited Treasury purchases. Policymakers noted that the U.S. federal government shutdown constrained their decision-making process. The Fed lowered its overnight benchmark rate to 3.75%–4.00%, marking the second rate cut this year.

“Markets tend to overreact to news out of the Federal Reserve in the short term,” said Oliver Pursche, senior vice president at Wealthspire Advisors. “Chairman Powell indicated that another rate cut is not a foregone conclusion… The Fed is data dependent.”

Tech giant Nvidia provided a major boost, becoming the first company to reach a $5 trillion market valuation, with shares up 2.7%. Nvidia has gained over 50% this year, driving Wall Street’s AI rally.

By the close, the Dow fell 39.81 points (0.08%) to 47,666.56, the S&P 500 dropped 6.44 points (0.08%) to 6,884.45, and the Nasdaq Composite rose 76.39 points (0.32%) to 23,903.89.

Investors are also watching results from major tech firms due after the bell, including Meta Platforms, Microsoft, and Alphabet, which could influence market direction in the coming days.

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