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U.S. stock benchmarks gave up earlier gains and closed lower on Wednesday as the Federal Reserve raised benchmark interest rates by a quarter of a percentage point, as expected, and signaled that the domestic economic growth outlook warranted a more aggressive rate-hike path than investors had anticipated. The S&P 500 fell 11.22 points, or 0.4%, to 2,775.63. The Dow Jones Industrial Average lost 119.60 points, or 0.5%, to 25,201.13. The Nasdaq Composite Index , which earlier set an intraday record at 7.748.96, turned lower to close 8.09 points, or 0.1%, lower at 7,695.70. Among the biggest losers on the S&P 500, H&R Block Inc. plunged 18%.
Dow industrials end lower by around 117 points, or 0.5%
S&P 500 ends 0.4% lower; Nasdaq Composite sheds 0.1%
Stocks end lower as Fed signals more aggressive rate-hike path
Nasdaq holds mostly flat at 7,698
Dow, S&P 500 down 0.4% lower just ahead of the closing bell
Dow drops to session lows--down more than 100 points--as stock market digests Fed rate hike
Nasdaq gains 0.4% at 7,730, recovering from earlier, post-Fed drop
Dow, S&P 500 trade flat but hold in positive territory
Stock market benchmarks turn positive as Fed continues news conference
The stock market cut some of its modest losses Wednesday afternoon as the Federal Reserve Chairman Jerome Powell, adopted a measured tone in explaining the central bank's second interest-rate increase of 2018 during a news conference.. Powell said that the Fed doesn't "want to declare victory" on inflation, which has begun to normalize toward policy makers' 2% annual target after stubbornly holding lower for a protracted period and even as employment levels hit historic lows. The Dow Jones Industrial Average was off 41 points, or 0.2%, at 25,282, the S&P 500 index declined by 6 points, or 0.2%, at 2,781, while the Nasdaq Composite Index was trading about 0.1% lower at 7,698. The policy-setting Federal Open Market Committee lifted interest rates by a quarter of percentage point to a range of 1.75% to 2% and a projection of Fed members' expectations for interest rates in the future were seen shifting to four from three for 2018, meaning a further two hikes could be expected this year. During the news conference Powell said the economy is healthy and indicated that the Fed took "another step in gradually" normalizing monetary policy since the beginning of the 2007-09 financial crisis but didn't want to move too quickly or too slowly in returning to a normal level of interest rates. Powell also said that going forward all Fed meetings will be accompanied by a news conference.
Financial stocks added to gains in afternoon trade Wednesday, after the Federal Reserve nudged up its target range for the fed funds rate by 0.25 percentage points (25 basis points) to 1.75% to 2.00%, as widely expected. The SPDR Financial Select Sector ETF rose 0.4% after the rate hike, after being up less than 0.1% just before the move. Among shares of the financial ETF's (XLF) most heavily weighted components, J.P. Morgan Chase & Co. went to a gain of 0.5% from a gain of 0.1%; Bank of America Corp. rose 0.9%, after being up 0.4% pre-Fed; Citigroup Inc. went to up 0.7% from up 0.3%; Goldman Sachs Group Inc. climbed 1.6%, after being up 1.1% pre-Fed; Wells Fargo & Co.'s stock went up 0.2% to up 0.7%. Higher interest rates can help boost bank profits, as they can increase the spread banks earn between longer-term assets, like loans, and shorter-term liabilities. Meanwhile, the yield on the 10-year Treasury note inched lower to 2.952% from 2.954% and the Dow Jones Industrial Average moved to down 48 points from down 26 points.
U.S. stocks mostly slumped on Wednesday after the Federal Reserve lifted interest rates for the second time this year and the seventh time since beginning its monetary-policy normalization imitative in December of 2015. The policy-setting Federal Open Market Committee lifted the federal-funds rate to a range between 1.75% to 2%, from 1.5% to 1.75%, marking the second rate hike this year and the seventh move since the start of the tightening cycle in December of 2015. The Dow Jones Industrial Average was down 45 points, or 0.2%, at 25,277, the S&P 500 index fell 4 points, or 0.2%, at 2,782, while the Nasdaq Composite Index climbed 11 points, or 0.1%, at 7,714. Fed Chairman Jerome Powell is slated to hold a news conference at 2:30 p.m. Eastern Time. For a live blog of the Fed decision go here.
Nasdaq holds slight gain, up 0.3% at 7,726
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Key U.S. | Last | Chg | Chg % |
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Dow Jones Industrial Average | |||
NASDAQ Composite Index | |||
S&P 500 Index | |||
Russell 2000 Index | |||
Other U.S. | Last | Chg | Chg % |
Dow Jones Transportation Average | |||
Dow Jones Utility Average Index | |||
Dow Jones U.S. Total Stock Market Index | |||
NASDAQ 100 Index (NASDAQ Calculation) | |||
S&P 400 Mid Cap Index | |||
NYSE Composite Index | |||
Barron's 400 Index | |||
CBOE Volatility Index | |||
Global | Last | Chg | Chg % |
Global Dow Realtime USD | |||
Asia/Pacific | Last | Chg | Chg % |
The Asia Dow Index USD | |||
S&P/ASX 200 Benchmark Index | |||
Shanghai Composite Index | |||
Hang Seng Index | |||
S&P BSE Sensex Index | |||
NIKKEI 225 Index | |||
FTSE Straits Times Index | |||
Europe | Last | Chg | Chg % |
STOXX Europe 50 Index | |||
STOXX Europe 600 Index | |||
CAC 40 Index | |||
DAX | |||
IBEX 35 Index | |||
FTSE 100 Index | |||
Americas | Last | Chg | Chg % |
BOVESPA Index | |||
S&P/TSX Composite Index | |||
IPC Indice de Precios Y Cotizaciones |
Company | Last | Chg | Chg % |
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Walt Disney Co. | |||
Goldman Sachs Group Inc. | |||
Intel Corp. | |||
Merck & Co. Inc. | |||
Cisco Systems Inc. | |||
Travelers Cos. Inc. | |||
Johnson & Johnson | |||
Chevron Corp. | |||
Walmart Inc. | |||
3M Co. | |||
McDonald's Corp. | |||
JPMorgan Chase & Co. | |||
Pfizer Inc. | |||
Nike Inc. Cl B | |||
UnitedHealth Group Inc. | |||
VISA Inc. Cl A | |||
International Business Machines Corp. | |||
Microsoft Corp. | |||
Home Depot Inc. | |||
Coca-Cola Co. | |||
General Electric Co. | |||
American Express Co. | |||
United Technologies Corp. | |||
Apple Inc. | |||
Procter & Gamble Co. | |||
Exxon Mobil Corp. | |||
DowDuPont Inc. | |||
Caterpillar Inc. | |||
Boeing Co. | |||
Verizon Communications Inc. |