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 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
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.