US Equity Markets Today

The Dow Jones traded up all morning and then plummeted 294 points after the announcement.

The market reaction indicates investors were hoping for a 50-basis-point cut. U.S. financials traded down on the news since they could all benefit from still lower interest rates. American Express, Bank of America, and Citigroup, all fell on the Fed's decision.

Shares of Washington Mutual tumbled after the company decided to lower its dividend and cut 3,000 jobs. In other corporate news, General Electric closed lower after confirming guidance below "street" expectations.

Kroger, the largest U.S. grocery chain, fell on contracting gross margins, despite beating analysts' earnings expectations. AT&T soared after announcing it will raise its dividend and accelerating its share buy-back program. - UBS