The Dow climbed 260.42 points or 0.6 percent to 46,018.32, the S&P 500 edged down 6.41 points or 0.1 percent to 6,600.35 and the Nasdaq fell 72.63 points or 0.3 percent to 22,261.33.

The late-day volatility on Wall Street followed the Federal Reserve's widely expected move to lower interest rates by a quarter point, bringing the federal funds rate target range to 4.0'4.25 percent. Fed officials projected two more cuts this year, aiming for 3.50'3.75 percent by the end of 2025, though traders were disappointed by the lack of aggressive easing. Only newly sworn-in Fed Governor Stephen Miran voted for a larger half-point cut.

Mortgage Bankers Association Chief Economist Mike Fratantoni noted that the 25-basis-point cut reflected caution, acknowledging labor market risks without signaling panic. Fed officials also expect just one cut next year, with notable differences in outlook. The next policy meeting is set for October 28'29, and CME Group's FedWatch tool shows an 89.1 percent probability of another quarter-point reduction.

Most of the major sectors ended the day showing only modest moves. Banking stocks strongly moved upwards with the KBW Bank Index climbing by 1.3 percent to a record closing high. Oil service stocks moved lower along with the price of crude oil, dragging the Philadelphia Oil Service Index down by 1.1 percent.

Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index fell by 0.3 percent, while China's Shanghai Composite Index rose by 0.4 percent and Hong Kong's Hang Seng Index surged by 1.8 percent. The major European markets also ended the day mixed. While the French CAC 40 Index slid by 0.4 percent, the German DAX Index and the U.K.'s FTSE 100 Index both crept up by 0.1 percent.

In the bond market, treasuries came under pressure in the latter part of the session, closing notably lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 5.0 basis points to 4.076 percent.

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