(fxcue news) - Indian shares look set to open on a positive note Thursday after the U.S. Federal Reserve decided to lower interest rates for the first time in over four years, aggressively slashing rates by half a percentage point. That said, investors remain concerned whether the Fed has waited too long to begin cutting rates and overshot its hoped-for soft landing. Fears of a wider Middle East conflict may also limit overall gains after a second wave of blasts struck Hezbollah on Wednesday, killing at least 20 people and pushing Israel and Hezbollah to the brink of all-out war. Benchmark indexes Sensex and Nifty gave up early gains to end modestly lower on Wednesday, after having hit new record highs in intraday trade. Asian markets traded mixed this morning, with sentiment dented by a dollar rebound and increased bond yields. Gold held steady after touching a record high on Wednesday. Oil extended losses for a second straight session as signs of weak U.S. demand offset the Fed rate cut optimism and escalating tensions in the Middle East. U.S. stocks fluctuated before ending in the red overnight and the dollar dropped after the Fed announced a whopping 50 bps rate cut to keep the labor market from slowing too much. Citing lower inflation, policymakers projected an extra half-point of cuts by the end of this year and a further percentage point of cuts in 2025, cautioning that the central bank would proceed carefully and evaluate the matter "meeting by meeting." The Dow and the S&P 500 reached new record intraday highs before ending down about 0.3 percent each for the day. The tech-heavy Nasdaq Composite also slipped 0.3 percent. European stocks closed lower on Wednesday ahead of the Fed decision. The pan European STOXX 600 dropped half a percent. The German DAX finished marginally lower, France's CAC 40 shed 0.6 percent and the U.K.'s FTSE 100 dipped 0.7 percent.