Stock market today: Most of Wall Street edges lower after Fed delivers a big cut to rates

NEW YORK (AP) — U.S. stock indexes edged lower Wednesday after the Federal Reserve kicked off its efforts to prevent a recession with a bigger-than-usual cut to interest rates.

The S&P 500 slipped 0.3% to pull 0.9% below its all-time high set in July. The Dow Jones Industrial Average dipped 103 points, or 0.2%, though it remains close to its record set on Monday. The Nasdaq composite lost 0.3%.

The momentous move by the Fed helps financial markets in two big ways. It eases the brakes off the economy, which has been slowing under the weight of higher rates, and it gives a boost to prices for all kinds of investments. Besides stocks, gold and bond prices had already rallied in recent months on expectations that cuts to rates were coming.

Because the move was so well telegraphed, and because markets had already climbed so much in anticipation of it, Wall Street’s reactions were relatively muted despite the Fed’s historic action. It marked the first cut to the federal funds rate in over four years, and it closed the door on a stretch where the Fed kept rates at a two-decade high to slow the economy enough to stifle the worst inflation in generations.

Now that inflation has eased significantly from its peak two summers ago and appears to be heading toward 2%, the Fed says it it can turn more of its attention toward protecting the slowing job market and overall economy.

“The time to support the labor market is when it’s strong and not when you begin to see the layoffs,” Fed Chair Jerome Powell said. “That’s the situation we’re in.”

The only question is how much the Fed will ultimately cut rates by to do so, which can prove to be a tricky balance. Lowering rates would help the economy by making it easier for U.S. businesses and households to borrow. But it could also offer more fuel for inflation.

The Fed released forecasts Wednesday that said its median official expects to cut the federal funds rate by another half of a percentage point through the end of the year. That could mean a traditional-sized cut of a quarter of a percentage point at each of its two remaining meetings scheduled for 2024.

After that, the median Fed official is projecting another full percentage point of cuts during 2025.

Some critics say the Federal Reserve may have already kept interest rates too high for too long, doing damage to the economy.

“When the Fed is behind the curve, it sometimes takes a big move to catch up to where they should have been all along,” said Brian Jacobsen, chief economist at Annex Wealth Management.

“We don’t think we’re behind,” Powell said in a press conference following the Fed’s announcement. “We think this is timely. But I think you can take this as a sign of our commitment not to get behind,” pointing to Wednesday’s hefty cut of half a percentage point. Powell called it a “good strong start to this.”

Other critics, meanwhile, say the Fed will need to be careful about cutting rates too much because of the possibility that inflation will remain stubbornly higher than it’s been in recent decades.

Powell repeated several times that the Fed does not feel “a rush to get this done” and will make its decisions on interest rates at each successive meeting, depending on what incoming data say.

“We’ll move as fast or as slow as we think is appropriate in real time,” he said. For now, he said, “the U.S. economy is in a good place, and our decision today is designed to keep it there.”

Like stock prices, Treasury yields wavered up and down repeatedly immediately after the Fed announced its cut and published its projections.

The 10-year Treasury yield eventually rose to 3.70% from 3.65% late Tuesday. The two-year yield, which more closely follows expectations for Fed action, edged up to 3.62% from 3.60% late Tuesday.

On Wall Street, Intuitive Machines soared 38.3% after NASA awarded it with a contract worth up to $4.82 billion for communication and navigation services the space agency will use to establish a long-term presence on the moon.

Trading in Tupperware Brands remained halted after the company filed for Chapter 11 bankruptcy protection. Its stock has been sinking, down to 51 cents, since a mini-revival early in the pandemic sent its stock above $30.

McGrath RentCorp, a company that rents and sells mobile office trailers, portable classrooms and other structures, fell 3.1% after it agreed to terminate its proposed buyout by WillScot following tough scrutiny of the deal from U.S. regulators.

All told, the S&P 500 slipped 16.32 points to 5,618.26. The Dow dropped 103.08 to 41,503.10, and the Nasdaq composite lost 54.76 to 17,573.30.

In stock markets abroad, indexes fell modestly in Europe after rising in much of Asia.

The Bank of Japan and the Bank of England are also holding monetary policy meetings later this week. Neither central bank is expected to move on rates, though the language of what the officials say could be an indicator of later moves and still influence markets.

AP Business Writers Yuri Kageyama and Matt Ott contributed.

Specialist Genaro Saporito, foreground, works with traders at his post on the floor of the New York Stock Exchange, Wednesday, Sept. 18, 2024. (AP Photo/Richard Drew)

The news conference of Federal' Reserve Chair Jerome Powell appears on a screen as trader Neil Catania works on the floor of the New York Stock Exchange, Wednesday, Sept. 18, 2024. (AP Photo/Richard Drew)

Trader Michale Conlon, right, works on the floor of the New York Stock Exchange as Federal Reserve Chair Jerome Powell's news conference appears on a television screen behind him, Wednesday, Sept. 18, 2024. (AP Photo/Richard Drew)

Trader Edward Curran works on the floor of the New York Stock Exchange, Wednesday, Sept. 18, 2024. (AP Photo/Richard Drew)

Specialist John O'Hara works at his post on the floor of the New York Stock Exchange, Wednesday, Sept. 18, 2024. (AP Photo/Richard Drew)

Trader Leon Montana works on the floor of the New York Stock Exchange, Wednesday, Sept. 18, 2024. (AP Photo/Richard Drew)

Trader Aaron Ford works on the floor of the New York Stock Exchange, Wednesday, Sept. 18, 2024. (AP Photo/Richard Drew)

Trader Michael Capolino works on the floor of the New York Stock Exchange, Wednesday, Sept. 18, 2024. (AP Photo/Richard Drew)

A bus passes the Wall St. subway station on Wednesday, Sept. 18, 2024, in New York. (AP Photo/Peter Morgan)

The New York Stock Exchange, with a banner for American Eagle Outfitters, is shown on Tuesday, Sept. 17, 2024, in New York. (AP Photo/Peter Morgan)

A person stands near an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Sept. 18, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

People stand near an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Sept. 18, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

People stand in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Sept. 18, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person rides a bicycle in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Sept. 18, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

NEW YORK (AP) — Less than two weeks before his 100th birthday, former President Jimmy Carter is receiving a lifetime achievement award from the Dayton Literary Peace Prize Foundation, which has set aside its longstanding rule that the winner accept the honor in person.

The Ohio-based foundation announced Thursday that Carter was this year's winner of the Ambassador Richard C. Holbrooke Distinguished Achievement Award, named for the late diplomat. In 2002, Carter was awarded the Nobel Peace Prize for his human rights advocacy and for brokering such agreements as the Camp David Accords between Egypt and Israel.

Carter, who turns 100 on Oct. 1, is in hospice care in Plains, Georgia. His grandson, Jason Carter, will accept the prize on his behalf during a November ceremony that will honor the former president’s peace efforts and his authorship of more than 30 books — what the foundation calls “the power of the written word to foster peace, social justice, and global understanding.”

“For the past 17 years, one of the standing requirements to receive the Ambassador Richard C. Holbrooke Distinguished Achievement Award was a guaranty that the recipient would appear in person in Dayton, OH for an on-stage interview and an awards ceremony," Nicholas A. Raines, executive director of the Dayton foundation, said in a statement. “This year we have decided to waive that requirement and present the award in absentia, to President Jimmy Carter.”

Jason Carter said in a statement that two of his grandfather's “most enduring interests have been a devotion to literature and a near-constant pursuit of a peaceful resolution to conflict.”

“It is gratifying to have the Dayton Literary Peace Prize Foundation choose to honor my grandfather with the Ambassador Richard C. Holbrooke Distinguished Achievement Award for a lifetime of work melding two of his loves — literature and peace,” Jason Carter added.

On Thursday, the Foundation also announced that Paul Lynch's “Prophet Song” won the Dayton Literary Peace Prize for Fiction and Victor Luckerson's “Built from the Fire” won for nonfiction.

Lynch and Luckerson each will receive $10,000. Fiction runner-up, “The Postcard” author Anne Berest, and nonfiction finalist, “Red Memory” author Tania Branigan, each get $5,000.

FILE - Egypt's President Anwar Sadat, left, shakes hands with Israeli Prime Minister Menachem Begin as U.S. President Jimmy Carter, center, looks on at Camp David, Md., Sept. 7, 1978. (AP Photo, File)

FILE - Egyptian President Anwar Sadat, left, U.S. President Jimmy Carter, center, and Israeli Prime Minister Menachem Begin clasp hands on the North lawn of the White House as they completed signing of the peace treaty between Egypt and Israel in Washington on March, 26, 1979. (AP Photo/Bob Daugherty, File)

FILE - Former President Jimmy Carter teaches Sunday School class at the Maranatha Baptist Church in his hometown of Plains, Ga., Aug. 23, 2015. (AP Photo/David Goldman)