U.S. stocks gain after Fed holds rates steady

U.S. stocks gain after Fed holds rates steady

In contrast, the S&P 500 was up 1.95 points, or 0.06%, at 3,134.47 and the Nasdaq Composite was up 12.34 points, or 0.14%, at 8,628.53.

Analysts were expecting a more hawkish Fed statement, which is not what Federal Reserve Chairman Jerome Powell provided yesterday. The Dow Jones Industrial Average began the session at 20,909.

"You are looking at a cautiously optimistic Fed", said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.

The U.S. central bank is widely expected to keep borrowing costs steady in its policy announcement, due at 2:00 p.m. ET (1900 GMT).

US stocks opened virtually unchanged on Monday as investors remained on the sidelines ahead of this week's Federal Reserve meeting.

Powell reinforced the message, telling reporters that "both the economy and monetary policy right now are in a good place".

The median estimate for the federal funds rate is at 1.6 percent at the end of 2020, suggesting no rate cuts or hikes in 2020, according to Fed officials' interest rate forecasts released on Wednesday.

Investors also continued to look for clues on the progress of the U.S.

"Trump is likely to meet with his top trade and economic advisers later today to discuss it".

"What did change was that Fed officials nudged their inflation expectations downwards for next year, as well shifting downwards the rate dot path expectations for both 2020, 2021 and 2022, and it is this it would appear that prompted the United States dollar to weaken, and bond yields to slip back". -China trade war and a global slump and remains generally healthy.

In the bank's bull case, gold may rally to a record above $2,000 in 2021 or 2022 given broader official sector buying trends as well as the Fed eventually reverting to the zero lower bound.

Shares of Chevron fell $1.66, or 1.4%, to $116.23 after the oil company wrote down the value of its assets by more than $10 billion and lowered its forecast for commodity prices.

In the corporate space, Home Depot shares closed lower after forecasting 2020 sales growth below expectations, while Boeing shares flew higher despite Federal Aviation Administration boss Steve Dickson saying the re-certification process for the embattled 737 Max would stretch into the new year. GameStop lost 98 cents, or 15%, to $5.53 after the videogame retailer cut its financial guidance amid worse-than-expected quarterly results. That was the upper limit for the stock, which made its debut after the world's largest initial public offering.

Related Articles