Wall Street retreats in a volatile session following the Fed’s decision.

Before the Federal Reserve’s announcement, the S&P 500 fluctuated between moderate gains and losses. The benchmark index rose as much as 1% after the decision, but then pared its gains and eventually closed lower.

U.S. stocks closed with moderate losses on Wednesday, far from their intraday highs, after the Federal Reserve cut interest rates by 50 basis points—the upper end of estimates—marking the first rate reduction in more than four years.

Trading was volatile. Before the announcement, the S&P 500 fluctuated between moderate gains and losses. After the decision, it briefly rose by 1% but eventually ended the day in negative territory.

Citing “greater confidence” that inflation is moving toward the central bank’s 2% target, the Fed cut rates by half a percentage point, now focusing on keeping the labor market healthy. The Fed made a bold move by ending its pause with a sharp cut of 50 basis points and is signaling another 50 basis points of reductions later this year. The Fed’s projections suggest that advancing the cuts will help achieve a soft landing, with unemployment stabilizing at 4.4% and inflation falling to its target quickly.

Market expectations for the size of the rate cut had been volatile in recent days. Last week, there was a 65% chance of a 25 basis point cut, while on Wednesday, CME’s FedWatch tool showed a 57% chance of a 50 basis point reduction.

The S&P 500 lost 16.32 points, or 0.29%, closing at 5,618.26; the Nasdaq Composite fell 54.76 points, or 0.31%, to 17,573.30; and the Dow Jones Industrial Average dropped 103.08 points, or 0.23%, to 41,503.10.

Markets are now fully pricing in at least a 25 basis point cut at the Fed’s November meeting, with around a 35% probability of another 50 basis point reduction.