S&P 500 pares gains, Nasdaq turns negative after Fed statement
By April Joyner NEW YORK (Reuters) - U.S. stocks pared gains on Wednesday, with the Nasdaq index turning negative, after the Federal Reserve raised interest rates but forecast fewer rate hikes for 2019
By April Joyner
NEW YORK (Reuters) - U.S. stocks pared gains on Wednesday, with the Nasdaq index turning negative, after the Federal Reserve raised interest rates but forecast fewer rate hikes for 2019.
The Federal Open Market Committee said in a statement following a two-day policy meeting that risks to the economy were "roughly balanced," but that it would "continue to monitor global economic and financial developments and assess their implications for the economic outlook."
Though the Fed now expects two rate hikes in 2019, down from three in its previous economic forecasts in September, investors said the statement was not dovish enough to calm concerns about the possible negative effects of rising rates as economic growth slackens.
A Reuters poll last week showed the probability of a U.S. recession in the next two years jumping to 40 percent.
"This is clearly a disappointment for those hoping for a dovish rate hike," said David Joy, chief market strategist at Ameriprise Financial in Boston. "There is still a gap between where the Fed is and where the market is in terms of policy expectations for next year."
The Dow Jones Industrial Average <.DJI> rose 81.11 points, or 0.34 percent, to 23,756.75, the S&P 500 <.SPX> gained 6.7 points, or 0.26 percent, to 2,552.86 and the Nasdaq Composite <.IXIC> dropped 10.61 points, or 0.16 percent, to 6,773.30.
Advancing issues outnumbered declining ones on the NYSE by a 1.32-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favoured decliners.
The S&P 500 posted no new 52-week highs and 51 new lows; the Nasdaq Composite recorded four new highs and 400 new lows.
(Reporting by April Joyner; Additional reporting by Chuck Mikolajczak in New York and Amy Caren Daniel in Bengaluru; Editing by Bernadette Baum)
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
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