NEW YORK — Wall Street finished a volatile session mostly higher Tuesday after investors, still jittery about mortgage-related problems at major lenders, interpreted comments from the Federal Reserve as suggestive of another interest-rate cut.
In minutes from their Oct. 30-31 meeting, Fed policymakers said their decision to lower rates for a second straight meeting “was a close call.” But in a separate forecast, they pointed to slowing growth next year, an uptick in unemployment and moderating inflation — which could portend a rate decrease.
Though the markets are pricing in a high chance of a rate reduction Dec. 11, when the Fed meets next, investors were on edge until the closing bell Tuesday, and the major indexes changed direction several times while analysts sorted through the Fed statements.
Meanwhile, Freddie Mac posted a $2 billion quarterly loss Tuesday, escalating jitters about the government- sponsored mortgage lender and its larger counterpart, Fannie Mae.
The Dow Jones industrial average rose 51.70, or 0.04 percent, to 13,010.14, after making 100-point swings in either direction throughout the day. The eventual gain followed Monday’s swoon of more than 200 points.
Broader stock indicators also ended higher. The Standard & Poor’s 500 index rose 6.43, or 0.45 percent, to 1,439.70, and the Nasdaq composite index rose 3.43, or 0.13 percent, to 2,596.81.
