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STORY: U.S. stocks closed down in choppy trading on Wednesday, after the Federal Reserve cut interest rates by a relatively hefty half-percentage-point.

The Dow, S&P 500 and Nasdaq each lost between a quarter and a third of a percent.

The Fed's announcement initially sent the indexes climbing, with the S&P and Dow hitting intraday highs.

"Bravo, Jay Powell, bravo!"

Eric Diton, president and managing director of The Wealth Alliance, cheered the Fed's decision, but believes the central bank should have acted sooner.

"I've been really a champion of Jay Powell. I've been saying, 'The Fed's medicine's working', and seeing inflation come down. But I really wanted him to cut last month and he didn't. And so I would have been upset and disappointed if he came in at 25 bps. He came in at 50 [bps]. Hundred percent that is the right move, and we're just beginning."

Markets are now fully pricing in a cut of at least 25 basis points at the Fed's November meeting, with a roughly 35% chance for another 50 basis point cut.

Small cap stocks, seen as more likely to benefit from a lower interest rate environment, moved higher, with the Russell 2000 index outperforming the S&P 500.

Regional banks, some of which had been stressed by higher interest rates, also gained ground, with the KBW Regional bank index jumping as much as 3.5% before closing up about half a percent.

Other notable movers included shares of Intuitive Machines, which surged more than 38% after the company clinched a $4.8 billion navigation services contract from NASA.