NEW YORK (AP) — A majority of U.S. stocks are climbing on Wednesday after indications from the Federal Reserve suggested that more of the interest rate cuts favored by Wall Street are likely to occur.

The S&P 500 dipped 0.3%, even though most stocks within the index were on the rise, hovering close to its record set earlier this week. Meanwhile, the Dow Jones Industrial Average increased by 290 points or 0.6%, as of 2:15 p.m. Eastern time. In contrast, the Nasdaq composite dropped by 0.9% due to declines among a few key Big Tech stocks.

These movements followed the Fed’s decision to reduce its main interest rate for the first time this year, a move that Wall Street had largely anticipated. More crucial to the market were the projections released by Fed officials, which suggested that additional interest rate cuts are likely both this year and the next.

Fed officials signaled that the typical member now expects the federal funds rate to decrease to a range of 3.25% to 3.50% by the end of next year, down from the current range of 4% to 4.25%.

Stocks had already surged to record levels based on the expectation of impending interest rate reductions, with some critics arguing they had become overpriced. Had Fed officials implied that further cuts were unlikely, such disappointment might have caused a downturn in stock prices.

Lower interest rates can stimulate the economy, and there are signs that the job market requires a boost. Recent hiring figures have been weak enough to suggest that the job market could be a more significant issue for the economy than the potential for higher inflation.

The Fed is in charge of setting interest rates to influence both inflation and the job market, and it had been keeping rates on hold so far this year because it’s been worried about how much President Donald Trump’s tariffs will raise prices for all kinds of products. Inflation has so far refused to go back below the Fed’s 2% target.

Stocks of companies that can get the biggest benefit from easier interest rates helped lead the way after the Fed released its projections. Small companies often need to borrow money to grow and compete with their bigger rivals, for example, and the smaller stocks in the Russell 2000 index rallied 1% to lead the market.

Lyft drove 11.9% higher after saying it will bring autonomous ride-hailing service to Nashville with Waymo.

Workday rose 6.9% after Elliott Investment Management said it’s built a stake of more than $2 billion in it and supports its management. The company, which helps customers manage their finances and human resources, recently increased its program to send cash to investors through purchases of its stock by up to $4 billion.

But drops for a handful of influential Big Tech stocks weighed on indexes. Nvidia fell 3.2%, and Broadcom sank 4.7%, for example. They earlier had been helping to carry Wall Street to records amid the frenzy about artificial-intelligence technology, almost regardless of what interest rates were doing.

RCI Hospitality Holdings dropped 8.7% after New York’s attorney general accused executives of bribery and other crimes for trying to avoid paying millions of dollars in sales taxes. RCI owns strip clubs and sports bars across the country, including Rick’s Cabaret.

Online ticket marketplace StubHub bounced between small gains and losses shortly after it started trading on the New York Stock Exchange for the first time. The stock is trading under the symbol “STUB” and priced its initial public offering at $23.50 per share.

In stock markets abroad, indexes were mixed across Europe and Asia.

Japan’s Nikkei 225 slipped 0.2% from its record after data showed Japan’s exports to the U.S. dropped 13.8% in August from a year earlier, as auto exports were hit by Trump’s tariffs.

In the bond market, the yield on the 10-year Treasury fell to 3.99% from 4.04% late Tuesday.

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AP Business Writers Yuri Kageyama and Matt Ott contributed.