CCN: The Dow and the wider US stock market worsened losses Wednesday following the latest Federal Reserve policy meeting protocol seemed to confirm that interest rates would remain in wait for the foreseeable future, as the Fed Hawks warnings
Dow, S & P 500 Pare Painful Losses
All Wall Street's large indices closed lower at the end of the trade, reflecting a volatile Dow futures pre-market. The Dow Jones Industrial Average was off more than 120 points before mating some of its losses during the afternoon session. It would eventually settle for 100.72 points or 0.4% at 25,776.61.
The broad S & P 500 Index for large cap stocks fell 0.3% to 2,856.27. The losses were primarily concentrated in the primary industry, where energy supply fell 1.5%. Stocks of materials and industrial products also fell sharply. On the opposite side of the big book, utilities and health companies rose sharply.
The technology-based Nasdaq Composite Index fell 0.5% to settle 7,750.84.
Federal Reserve stresses patience as Fed Hawks Seethe
U.S. central banks will hardly change the monetary policy course at any time with many sidetracks with President Jerome Powell's view that the recent decline in inflation was likely to be temporary.
"Members observed that a patient approximation to determine future adjustments of the federal fund rate target area will likely remain appropriate for some time" the protocol of April 30-May 1, the Federal Open Market Committee (FOMC) meeting revealed Wednesday.
Although this may have disappointed some investors seeking resumption of ultra-low interest rates, the Fed assures that an interest rate hike is off the table for the rest of 2019 and beyond. The central bank has been foggy with political normalization since the beginning of 2019 after their fourth rate hike in December accelerated the worst stock market collapse for almost a decade.
The US economy performs better than almost all its advanced industrialized peers, but a downturn in production, consumer spending and housing has worried investors. All signs seem to show that the US economy experienced a broad cooling at the beginning of the second quarter.
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