Julius Shakari, from California in full PPE gear, takes photos with his friend in front of Charging Bull, sometimes referred to as Wall Street Bull, a bronze sculpture in the Financial District of Manhattan New York on May 19, 2020.
Timothy A. Clary | AFP | Getty Images
U.S. stock futures were flat Wednesday night as traders digested the Federal Reserve̵
The Dow Jones Industrial Average traded 6 points lower, or 0.02%. The S&P 500 and Nasdaq 100 futures were also marginally lower.
Members of the Federal Open Market Committee indicated that the US interest rate could remain anchored at zero-tied through 2023 as the central bank tries to spur inflation. In a statement, the committee said: “When inflation continues to fall below this long-term target, the Committee will aim to achieve inflation moderately above 2% for some time, so that inflation averages 2% over time.”
Fed Chairman Jerome Powell reiterated this position at a press conference, saying that easy monetary policy will remain “until these results, including maximum employment, are reached.”
He also said parts of the US economy will continue to struggle unless lawmakers move forward with further fiscal stimulus. This comment from Powell came as lawmakers are struggling to reach agreement on a new bill on coronavirus assistance. Earlier Wednesday, Chief of Staff Mark Meadows of the White House said he was optimistic an agreement could be reached.
Usually, the prospect of lower interest rates over a longer period encourages the purchase of shares. However, that was not the case on Wednesday.
The S&P 500 and Nasdaq both closed lower, and the Dow ended well away from its session high. Big Tech pulled the S&P 500 and Nasdaq down, with Apple, Facebook and Microsoft all closing lower.
“The major indices fell back to their short-term trading range after the Fed’s announcements, confirming that bulls are still not out of the woods,” said Ken Berman, founder of Gorilla Trades. “While there was nothing scary in today’s Fed announcements, equities reacted in a bearish manner, especially in the technology sector.”
On Thursday, Wall Street gets the latest look at U.S. weekly jobless claims. US house start data is also set for release.
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