NATALIE ALLEN, CNN ANCHOR: The other story we're following this hour is the Fed cutting interest rates by another half point, and on the floor of the New York Stock Exchange Rhonda Schaffler is watching where trading is headed now with this news -- Rhonda.</s>RHONDA SCHAFFLER, CNN CORRESPONDENT: Hi there, Natalie. You know it's really hard to call because we are still seeing the markets trying to decipher what this, as expected, 50-basis point cut by the Federal Reserve means for stock prices. They've really been bouncing all over the place. About a half hour after the Fed move now we are and the Dow Jones Industrial Average is down just slightly, about 10 points, a little less than that. The Dow had been down 60 points right before the announcement. The Blue Chip index then rallied into positive territory before falling back. drifting, really before since the news came out. Technology stocks though are holding steady from their levels before the Fed's action. Nasdaq composite right now up about 1 percent or 21 points. The tech heavy index has lost ground the past four sessions. Credit market looking for a bit of direction as well. The 10-year Treasury note is flat, the yield 5.43 percent. The long bond is down slightly yielding 5.86 percent. This rate cut by the Fed is the 5th this year. The Fed funds rate now stand at 4 percent. Investors also are paying close attention to the Fed's commentary using the exact same language it did a month ago. The central bankers said capital spending is continuing to decline, but also says pressure on the labor market appears to be easing. That should keep inflation under control. One analyst said that suggests the Fed's rate cutting cycle might not be over.</s>UNIDENTIFIED FEMALE: This is a Fed really much reacting to current economic conditions. There is very little in this statement that said things about going forward, much about how things are at this moment in time and that's very important in understanding because it leaves the Fed's options open to ease again if they feel necessary in June, but doesn't necessarily lock them into an easing in June.</s>SCHAFFLER: The food will meet late June considering interest rates again.
Fed Cuts Interest Rates by Half Point