Fed reduced 1/4 point for the 2nd time, on the day of the announcement market rised 140 points, but on the next day of this announcement, market dropped 230 points.
Because peoeple think this would be the last time Fed reducing interest rate. Further reductions will cause the US Dollar inflation more.
When Fed used up its last bullet, what else can the Fed do to prevent a economy slow-down or even upcoming recession? People don't know.
UNCERTAINTY is bad for the market.
