U.S. stocks experienced volatility on Wednesday following the Federal Reserve's announcement of a quarter-point rate cut, a move that was widely anticipated by market participants.

The central bank's updated projections indicated a rise in inflation expectations and a reduction in the number of anticipated rate cuts for 2025, leading to a negative reaction in the markets.

The S&P 500 index reflected this uncertainty, turning red as investors digested the implications of the Fed's dot plot. The shift in outlook suggests that the central bank is preparing for a more cautious approach to monetary policy in the coming years, which could impact market dynamics and investor sentiment moving forward.