Stocks End Mixed Despite Fed’s Upbeat View of Economy
U.S. stocks ended mixed on Wednesday, with technology names on the up side, after a closely watched meeting of the Federal Reserve.
Dow Jones Industrial Average
finished down 128 points, or 0.35%. The
was little changed and the
gained 0.7%. Stocks were a touch higher than before the Fed announcement, though not by much.
That’s largely because “the changes that happened were small and highly predictable,” said Tom Graff, head of fixed income at Brown Advisory.
After a nod to its current monthly buy of $120 billion in bonds—meant to keep bond yields low and economic activity high—the Fed said “the economy has made progress toward these goals, and the Committee will continue to assess progress in coming meetings.”
The words could be read as a hint that the central bank is close to reducing the size of its bond buying program, which could pressure stock prices.
A slight uptick in stocks after a briefing by Fed Chairman Jerome Powell might have been a sign that investors were encouraged by his tone, which indicated the Fed is in no rush to drastically alter monetary policy.
“Powell did try to walk back a little bit some of the hawkish sentiment,” Graff said. “The no-change Fed is something stocks want to hear because the current Fed stance is pretty good for stocks.”
Abroad, Hong Kong’s
rose 1.5%, recouping losses from Monday and Tuesday in the index’s greatest fall since the beginning of the pandemic. The
slipped 0.6%, while Tokyo’s
edged 1.4% lower. The
in London was 0.3% higher and the pan-European
rose 0.7%. The
in Paris lifted 1.2% and Frankfurt’s
moved 0.3% into the green.
A selloff in Asia, especially among Chinese technology stocks, mostly paused.The tech, education, property, and healthcare sectors have come under intense pressure from a wider regulatory crackdown by the Chinese government, which sent shares such as
on a slide.
Investors were met with blowout earnings from tech heavyweights
(GOOGL) after markets closed on Tuesday. Despite strong results, the response from investors was muted.
Overall, fast-growing technology stocks were performing well. The Nasdaq 100 was rising 0.4% after having dipped Tuesday.
Apple stock fell 1.2% in Wednesday trading after reporting a profit of $1.30 a share on sales of $81.4 billion. That was enough to beat estimates of $1.01 a share on sales of $73.3 billion.
Alphabet stock rose 3.2% after reporting a profit of $27.26 a share, beating estimates of $19.34 a share, on sales of $61.8 billion, above expectations for $56.1 billion.
Microsoft stock dropped 0.1% after reporting a profit of $2.17 a share, beating estimates of $1.92 a share, on sales of $46.1 billion, above expectations for $44.2 billion.
((BA)) stock gained 4.1% after reporting a surprise profit of 40 cents a share on Wednesday, beating estimates for a loss of 83 cents a share, on sales of $17 billion, above expectations for $16.5 billion.
(SBUX) stock dropped 2.9% after reporting a profit of $1.01 a share on Tuesday, beating estimates of 78 cents a share, on sales of $7.5 billion, above expectations for $7.3 billion.
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