S&P 500 Gains and Losses Today: Index Drops as Fed Cuts Rates but Signals Caution [Video]

Major U.S. equities indexes plunged as the Federal Reserve concluded its final policy meeting of the year. The central bank lowered benchmark interest rates by a quarter of a percentage point, as expected, but policymakers suggested that persistent inflation could require a more restrained approach in 2025.

After trading higher for much of the day, the S&P 500 changed course following the rate-cut announcement and as Fed Chair Jerome Powell addressed the press, ending with a daily loss of 3%. The Dow finished the session down 2.6%, extending its streak of down days to double digits for the first time in four decades. The Nasdaq dropped 3.6% as concerns about the interest-rate outlook weighed on the tech sector.

Shares of human resources services provider Paycom Software (PAYC) dropped 10.1% on Wednesday, the most of any S&P 500 constituent. Concerns about cannibalization have weighed on Paycom stock over the past year, with the efficiency of its Beti automated payroll solution reportedly eating …