US stocks are hovering around fresh records on Wednesday after the Federal Reserve, as expected, cut its key interest rate, while AI giant Nvidia surged to become the first company valued at $US5 trillion ($7.6 trillion) on Wall Street.

The S&P 500 lost 0.4 per cent, the Dow Jones slipped 0.3 per cent and the Nasdaq composite was 0.1 per cent lower. All three indexes are coming off their latest all-time high. Markets have retreated after the head of the Federal Reserve warned that more cuts to interest rates, which Wall Street has been banking on, are not guaranteed.

Stocks erased what had been modest gains after Chair Jerome Powell warned that it “is not a foregone conclusion” that the Fed will cut its main interest rate again at its next meeting in December, “far from it.”

“That needs

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