U.S. stocks were mixed on Thursday as investors awaited the Federal Reserve’s interest rate decision due later in the day.

The S&P 500 gained 0.4 percent in early trading, although its momentum slowed significantly after a sharp rise the previous day following Donald Trump’s presidential victory.

The Dow Jones Industrial Average fell 62 points, or 0.1 percent, while the Nasdaq Composite rose 0.7 percent.

McKesson, a healthcare services company, led the market with a gain of 8.1 percent after reporting stronger-than-expected quarterly profits.

The company benefited from growth in its pharmaceutical business and raised its profit forecast for the year.

What impact will the interest rate cut have on Americans?

The market’s main focus was on the Fed’s decision. Most analysts expect the central bank to cut interest rates for the second month in a row.

The Fed began its cycle of interest rate cuts in September to support the labor market after bringing inflation close to its 2 percent target.

A report on Thursday showed a slight increase in the number of U.S. workers applying for unemployment benefits, although the figure was in line with economists’ expectations.

Another report also showed a slight increase in labor productivity over the summer, which could help curb inflation, although the increase was smaller than forecast.

Trump’s victory led to uncertainty about what impact his policies might have on the economy.

Investors are particularly concerned about his calls for tariffs and other measures that could drive up inflation.

How did the international markets react?

As a result, expectations for future interest rate cuts have been revised downwards. This shift was one of the factors that catapulted the S&P 500 to several record highs this year.

In terms of individual stocks, Lyft rose 28.4 percent after the stock reported better-than-expected sales and profits. Qualcomm rose 2.8 percent after beating analysts’ profit forecasts.

In contrast, British chipmaker Arm Holdings reported solid profits but gave disappointing guidance, causing its U.S.-listed shares to fall 1 percent.

Match Group, the parent company of the Tinder app, posted a significant 18 percent decline after missing revenue expectations due to Tinder’s continued underperformance.

Overseas, London’s FTSE 100 was unchanged after the Bank of England cut its interest rate by 0.25 percent.

In Asia, Japan’s Nikkei 225 fell 0.3 percent on worries about possible trade tensions under a Trump administration.

Neil Newman, head of strategy at Astris Advisory Japan, said concerns about Trump’s tariffs could influence market sentiment, particularly in the early stages of his presidency.

On a positive note, stocks in Hong Kong and Shanghai rose 2 percent and 2.6 percent, respectively, after China reported a sharp rise in exports in October, marking the strongest growth in more than two years.

How will the 2024 election affect Fed rate cuts?

Trump has proposed significant tariffs on Chinese imports, including a blanket 60 percent tariff, that could further weigh on China’s economy, especially as the country works to boost growth.

However, analysts at Capital Economics suggest that any negative impact from the tariffs may not be felt until later next year.

On the bond market, the yield on the 10-year government bond fell to 4.37 percent from 4.44 percent on Wednesday, after rising sharply the previous day.

This increase was due to expectations that Trump’s policies could boost economic growth, inflation and national debt.

Some stocks that had surged in response to Trump’s election victory showed signs of cooling.

Bank stocks, which had rallied on hopes of stronger economic growth and regulatory changes, underperformed the broader market.

Smaller U.S. stocks also weakened after a strong rally on beliefs that Trump’s policies would benefit them more than large multinationals.

The stock most associated with Trump, Trump Media & Technology Group, fell 14.7 percent.

This article contains additional reporting from The Associated Press