S&P 500 ends down after late reversal despite Fed's low-rate stance
By Caroline Valetkevitch (Reuters) - The S&P 500 ended lower on Wednesday, reversing gains late in the day as losses in technology shares outweighed a Federal Reserve statement that stoked optimism it would keep U.S. interest rates near zero for a prolonged period.
By Caroline Valetkevitch
(Reuters) - The S&P 500 ended lower on Wednesday, reversing gains late in the day as losses in technology shares outweighed a Federal Reserve statement that stoked optimism it would keep U.S. interest rates near zero for a prolonged period.
The index initially extended gains and the Dow briefly rose more than 1% after the Fed kept rates near zero and promised to in its policy statement to keep them near there until inflation is on track to "moderately exceed" the U.S. central bank's 2% target "for some time."
New economic projections showed most policymakers see interest rates on hold through at least 2023.
But the market reversed direction heading into the close, with technology shares leading the way down on the S&P 500. The tech sector <.SPLRCT>, which had been recovering from a sharp sell-off, fell 1.6% on the day, the biggest drag on the benchmark index.
The statement and comments by Fed Chair Jerome Powell were "even more dovish than the market expected," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. "It telegraphed to the market that the Fed intends to remain accommodative."
Late losses likely followed declines in technology shares, she said. "What you're seeing is some profit-taking in the tech sector. That's where the selling is."
The Dow Jones Industrial Average <.DJI> rose 36.78 points, or 0.13%, to 28,032.38, the S&P 500 <.SPX> lost 15.71 points, or 0.46%, to 3,385.49 and the Nasdaq Composite <.IXIC> dropped 139.86 points, or 1.25%, to 11,050.47.
The central bank's two-day meeting was 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.
On the plus side, FedEx Corp
The Dow Jones transportation average <.DJT>, often seen as a barometer of economic health, rose 0.7%.
Spotify Technology SA
Advancing issues outnumbered declining ones on the NYSE by a 1.68-to-1 ratio; on Nasdaq, a 1.46-to-1 ratio favored advancers.
The S&P 500 posted 25 new 52-week highs and no new lows; the Nasdaq Composite recorded 72 new highs and 16 new lows.
Volume on U.S. exchanges was 9.80 billion shares, compared with the 9.41 billion average for the full session over the last 20 trading days.
(Editing by Shounak Dasgupta and David Gregorio)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Katanga Johnson WASHINGTON (Reuters) - Global equities set both an intraday high and record close on Tuesday as markets as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation while Wall Street's main indexes wavered before ending little changed. Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn Energy shares were among the best performing during the session as the OPEC+ alliance agreed to hike output in July and gave a bullish forecast.
(Reuters) - Zoom Video Communications Inc reported better-than-expected quarterly revenue on Tuesday, benefiting from steady demand for its video-conferencing platform as people wary of the pandemic continued school and work from home. Zoom became a household name during the pandemic as businesses and schools switched to its video conferencing platform for virtual classes, office meetings and social catch-ups.
By Michele Kambas NICOSIA (Reuters) -Cyprus's ruling conservatives emerged as winners but failed to get an absolute majority in a parliamentary election on Sunday, with voters turning to smaller parties, including a right-wing party with links to Greece's now outlawed Golden Dawn.