Stocks were ending slightly lower Wednesday in choppy trading after the market got the 50 basis point rate cut from the Federal Reserve rate most traders expected. Sectors were mixed and mostly higher but a mixed showing for megacaps weighed on the major averages with Nvidia among the laggards. The Dow Jones industrial average and the S&P 500 and the Nasdaq all eased 0.3 percent. Bond yields and the dollar rose while and oil prices slipped.

Stocks had traded up this week on an expectation of an aggressive rate cut to start the Fed's rate cut cycle, even if most bank forecasters looked for a 25 basis point move. So it was not surprising that many participants having bought on the rumor, sold on the fact. There was also so disappointment in the market that Fed Chair Jerome Powell's comments about further rate cuts appeared cautious, as he said not to expect 50 basis point increments because the Fed started that way, and repeated that the economy and markets remain strong despite the aggressive action.

Among sectors, defensive sectors lagged, especially utilities and consumer staples, along with precious metals, waste haulers, aerospace & defense, casinos, and oil servicers. Best were small caps, machinery, discount stores, regional banks, and apparel & accessories.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.