Major stock indexes closed with modest losses and the dollar gained ground in choppy trading on Wednesday after the U.S. Federal Reserve opted for a supersized cut in its first move to borrowing costs in more than four years.

Fed chief Powell says the move will shore up the labor market while it's strong. Stocks closed down with traders looking for even more aggressive cuts this year.

Traders added to bets on further easing by the Federal Reserve and the dollar ticked lower after the US central bank cut interest rates by a half-point in its first reduction in four years.Most Read from BloombergCalifornia’s Anti-Speeding Bill Can Be a Traffic Safety BreakthroughTo Build a Happier City,