Stocks fluctuate after Fed rate cut - WKOW 27: Madison, WI Breaking News, Weather and Sports

Stocks fluctuate after Fed rate cut


NEW YORK (AP) -- The stock market got the news it expected from the Federal Reserve -- a half-point cut in interest rates -- and is now trying to settle on a direction.

  The major indexes have been fluctuating since the Fed announced it was lowering its fed funds rate to 1 percent.

  The market is still digesting the Fed's economic assessment statement that accompanied the rate cut.

  The central bank spelled out a weakening of economic conditions in the U.S. and abroad, citing first a drop in spending by American consumers.

  The Fed also reiterated that it expects government steps, including its own efforts to increase liquidity, to improve credit market conditions and the economy over time.

  The Dow Jones industrials are down 17 at the 9,047 level after shifting between gains and losses after the Fed's 2:15 p.m. EDT announcement.

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