S&P 500 ends slightly lower; tech declines weigh despite Fed's low-rate stance

By Caroline Valetkevitch (Reuters) - The S&P 500 ended a choppy session slightly lower on Wednesday as losses in technology shares weighed down the index even after the U.S. Federal Reserve issued a statement that cemented expectations interest rates would stay near zero for a prolonged period. The index initially extended gains and the Dow briefly gained more than 1% in afternoon trading after the Fed in its policy statement kept rates near zero and promised to keep them near there until inflation is on track to 'moderately exceed' the U.S

Reuters September 17, 2020 02:05:18 IST
S&P 500 ends slightly lower; tech declines weigh despite Fed's low-rate stance

SP 500 ends slightly lower tech declines weigh despite Feds lowrate stance

By Caroline Valetkevitch

(Reuters) - The S&P 500 ended a choppy session slightly lower on Wednesday as losses in technology shares weighed down the index even after the U.S. Federal Reserve issued a statement that cemented expectations interest rates would stay near zero for a prolonged period.

The index initially extended gains and the Dow briefly gained more than 1% in afternoon trading after the Fed in its policy statement kept rates near zero and promised to keep them near there until inflation is on track to "moderately exceed" the U.S. central bank's 2% inflation target "for some time."

New economic projections released with the policy statement showed most policymakers see interest rates on hold through at least 2023.

But the market lost ground heading into the close, led by losses in technology shares.

"The Fed is going to be very supportive of the economy and Powell wants Congress to be more stimulative," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, New York. It's a worry congress isn't being supportive."

The central bank's two-day meeting is its first under a newly adopted framework that promises to shoot for inflation above 2% to make up for periods where it runs below that target.

Unofficially, the Dow Jones Industrial Average <.DJI> rose 38.17 points, or 0.14%, to 28,033.77, the S&P 500 <.SPX> lost 15.62 points, or 0.46%, to 3,385.58 and the Nasdaq Composite <.IXIC> dropped 139.86 points, or 1.25%, to 11,050.47.

(Additional reporting by Sinead Carew in New York and Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Shounak Dasgupta and David Gregorio)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.