Stocks charge into positive territory after Fed cuts rates

Stocks gained after the Federal Reserve on Wednesday lowered its benchmark interest rate by a quarter percentage point.

The Dow Jones Industrial Average fell to session lows, down more than 200 points following the decision, before charging into positive territory. The S&P 500 fell as much as 0.7 percent and the Nasdaq was down as much as 1 percent.

The Federal Reserve cut its benchmark interest rate by 25 basis points to a range between 1.75 percent and 2 percent after its July reduction was its first in a decade. The central bank cited weakening exports and low inflation as reasons for the cut.

"Job gains have been solid, on average, in recent months, and the unemployment rate has remained low," the central bank's monetary policy committee said in a statement. "Although household spending has been rising at a strong pace, business fixed investment and exports have weakened. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent."

Wednesday's decision came a day after the Federal Reserve Bank of New York took the unusual step of injecting $53 billion into markets to quell a spike in interest rates.