* U.S. Treasury yields rise; gold slips
* Oil prices cool after Saudi pledge on production(Recasts with Fed interest rate decision and market reaction)
By Saqib Iqbal Ahmed
NEW YORK, Sept 18 (Reuters) - Wall Street stocks slipped onWednesday after the U.S. Federal Reserve gave mixed signalsabout what may happen next after it cut interest rates by aquarter of a percentage point for the second time this year in awidely expected move.
The dollar rose against the yen and the euro, while U.S.Treasury yields edged higher in choppy trading.
In lowering the benchmark overnight lending rate to a rangeof 1.75% to 2.00% on a 7-3 vote, the Fed's policy-settingcommittee nodded to ongoing global risks and "weakened" businessinvestment and exports.
The Fed said continued growth and strong hiring are "themost likely outcomes," but nevertheless cited "uncertainties"about the outlook and pledged to "act as appropriate" to sustainthe expansion.
The rate cut fell short of the more aggressive reduction inborrowing costs that President Donald Trump had demanded.
"The main concern is there might not be another cut, andthat's why you had a little bit of a selloff," said Alan Lancz,president at Alan B. Lancz & Associates, in Toledo, Ohio. "Butit's almost like selling on good news. They left the door openfor more cuts. It's a really divided Fed right now."
The Dow Jones Industrial Average fell 164.4 points,or 0.61%, to 26,946.4, the S&P 500 lost 21.57 points, or0.72%, to 2,984.13, and the Nasdaq Composite dropped83.66 points, or 1.02%, to 8,102.35.
The MSCI world equity index, which tracksshares in 47 countries, fell 0.51%.
The dollar index, which tracks the greenback againsta basket of other currencies, was up 0.25% to 98.502.
U.S. Treasury yields crept higher in volatile trading afterthe rate decision, with benchmark 10-year notes lastup 10/32 in price to yield 1.763%.
Oil prices cooled as Saudi Arabia's pledge to quicklyrestore production eased worries over supply following a weekendattack on Saudi oil facilities.
Tension in the Middle East remained elevated, however. SaudiArabia on Wednesday displayed remnants of what it described asIranian drones and cruise missiles used in the attack, callingthem "undeniable" evidence of Iranian aggression. Trump ordereda major increase in sanctions on Iran on Wednesday, followingrepeated U.S. assertions that Iran was behind the attack.
U.S. crude fell 2.48% to $57.87 per barrel and Brentwas last at $63.33, down 1.89% on the day.
Gold prices slipped and spot gold was down 0.25% at$1,498.439 an ounce.
(Reporting by Saqib Iqbal Ahmed; Additional reporting KarenBrettell and Caroline Valetkevitch; Editing by Leslie Adler)