U.S. stocks traded in a muted fashion Wednesday, with investors wary of taking significant positions ahead of the conclusion of the all-important Federal Reserve meeting later in the day.
By 09:35 ET (13:35 GMT), the Dow Jones Industrial Average fell 80 points, or 0.2%, the S&P 500 traded 4 points, or 0.1%, lower, while the NASDAQ Composite traded 14 points, or 0.1%, higher.
Fed meeting, Powell address in focus
Markets broadly expect the central bank to keep interest rates on hold, but the bank’s statement on monetary policy, along with a post-meeting press conference by Chair Jerome Powell, will be closely watched for any cues on the speed and size of future interest rate cuts.
Hotter-than-expected inflation prints for January and February spurred fears that the Fed could trim its outlook for rate cuts in 2024, given that it has repeatedly signaled that the path of inflation will drive any loosening in monetary policy.
Sticky inflation, coupled with recent signs of resilience in the U.S. economy, gives the Fed more headroom to keep rates higher for longer.
Intel soars on government confidence
In corporate news, Intel (NASDAQ:INTC) stock rose 1.6% after the Biden administration announced it is awarding the company nearly $20 billion in grants and loans, as it seeks to boost the country’s chip output.
Tesla (NASDAQ:TSLA) stock rose nearly 1% after the EV manufacturer confirmed it will raise the price of China-produced Model Y vehicles from April 1, suggesting solid demand in this important market.
General Mills (NYSE:GIS) stock rose nearly 5% after the processed foods giant posted a smaller-than-expected drop in quarterly sales, backed by higher prices for its breakfast cereals, snack bars and pet food products that helped cushion a blow from slowing demand.
Chipotle Mexican Grill (NYSE:CMG) stock rose over 5% after the burrito chain’s board approved a 50-for-1 split of its common stock, its first ever stock split, opening up the opportunity for more potential investors to buy into the company.
On the flip side, Boeing (NYSE:BA) stock fell 0.7% after the aircraft manufacturer’s CFO Brian West indicated that cash flow will be worse than the company had expected even back in January as the troubled plane maker focuses on quality after a spate of incidents.
Signet Jewelers (NYSE:SIG) stock slumped 12% after the world’s largest retailer of diamond jewelry reported a sharp drop in sales in the important fourth quarter, particularly in North America.
Crude retreats ahead of Fed
Oil prices fell Wednesday, retreating from four-month highs amid caution ahead of the latest Fed policy announcement.
By 09:35 ET, the U.S. crude futures traded 1.7% lower at $81.36 a barrel, while the Brent contract dropped 1.5% to $86.10 per barrel.
Both benchmarks settled at their highest levels since late October on persistent signs of tight supplies, but a stronger dollar has seen some profit-taking as it makes oil more expensive for investors holding other currencies.
Data from the American Petroleum Institute, released on Tuesday, showed that U.S. crude inventories shrank 1.5 million barrels in the week to March 22, surprising after expectations for a small build.
The reading potentially marks a second straight week of draws in U.S. inventories, if confirmed by the official data, from the Energy Information Administration later Wednesday.
(Ambar Warrick contributed to this article.)
https://www.investing.com/news/stock-market-news/us-stock-futures-tread-water-ahead-of-more-fed-cues-3345084
