Stocks Sink, Then Recover After Fed Rate Cut

Stocks are rebounding at the close of trading, led by banks and big tech names, after the Federal Reserve delivered an expected cut in interest rates, the AP reports. Stocks initially fell after the Fed announcement, after the Fed showed its members are divided about the upcoming path for interest rates. The Dow Jones Industrial Average dropped as much as 210 points. The rally came as Fed Chairman Jerome Powell said the central bank would be ready to take action if the economy weakened. Apple and Microsoft finished with small gains after falling earlier in the day. JPMorgan rose 1% as banks rose after the Fed announcement. The Dow rose 36 points, or 0.1%, to 27.147. The S&P gained 1 point to 3,006. But the Nasdaq dropped 8 points, or 0.1%, to 8.177. (More stock market stories.)