The S&P 500 was little changed on Wednesday after the Federal Reserve said it would leave interest rates unchanged but indicated another hike on the horizon.
The broad index slid just 0.1%, while the Nasdaq Composite slipped 0.5%. The Dow Jones Industrial Average rose 144 points, or 0.4%.
Both the S&P 500 and Nasdaq rose more than 0.3% at session highs, while the Dow was at one point up more than 250 points.
The Fed held rates steady, as was widely anticipated. But the central bank indicated that one more rate hike is expected before the end of the year in its economic projections.
The Fed indicated it would end its hiking campaign after that increase and begin cutting rates next year —though keeping rates at a higher level for the year than signaled in June.
The markets gyrated as traders listened to Fed Chair Powell give his outlook for rates. Powell signalled that the central bank would “proceed carefully” in raising rates further but the Fed chief also said they had more work to do in the fight against inflation.
“The Federal Reserve’s decision to hold the interest rate steady demonstrates a commitment to maintaining a course toward economic stability and allowing the historic increases in rates already implemented work through the economy,” said Jay Love, U.S. chief investment strategist at Mercer. “The Fed’s continuing focus on addressing inflationary pressures and promoting economic stability is highly welcome.”
Technology stocks dragged on the S&P 500 in the session, with information technology and communication services the two worst performing sectors. Real estate stocks performed the best.
https://www.cnbc.com/2023/09/19/stock-market-today-live-updates.html
