Investing.com – The Dow ended down as it had trouble keeping profits after the Fed's unchanged rate decision and the strong signal that it would not expect interest rate hikes for a long time.
Equities were also hampered by trading concerns and stock markets A slump in financials.
The slump fell 0.55%, the loss 0.29%, while the gain fell 0.07%. The Dow rose 137 points six minutes after the US Federal Reserve's announcement, and even made a brief run in the black during the day. The profits, however, were soon reduced again.
The US Federal Reserve unexpectedly lowered its outlook for rate hikes, signaling that given the slowdown in economic growth, no further tightening would be appropriate for the current year.
"Given the global economy and the world Financial developments and subdued inflationary pressures, the committee will be patient as it determines which future adjustments to the target corridor could be appropriate for these results," the Fed said in a statement Statement.
To come to an end, the Fed also said it would start in May to reduce proceeds from securities in its balance sheet. It rolls off every month and will stop the program in September.
The Fed has approved up to $ 50 billion in expiring securities per month to beat its balance sheet, which peaked at around $ 4.5 trillion in January 201
"The FOMC more As market expectations heightened expectations of a prolonged pause, if not impossible, end the tightening cycle," BMO said in a note.
The Fed's yielding monetary policy lowered government bond yields and squeezed financials, especially the banks. Falling government bond yields detract from banks' ability to generate net interest.
Goldman Sachs (NYSE :), JPMorgan Chase (NYSE 🙂 and Bank of America (NYSE) ended the day with heavy losses.
The sensitive yield dropped nearly 3%.
The US Federal Reserve's political decision followed a bleak update by US President Donald Trump on trade.
"We're not talking about leaving out (tariffs), we're talking about going." They should make sure over an extended period of time that we have to make sure that if we trade with China, China lives on the deal, "Trump told reporters.
The US has tariffs on Chinese goods worth $ 250 billion The dollar has hit half the value of US imports from the country, with China paying $ 110 billion in US tariffs.
In the technology sector, FANG shares, led by Netflix (NASDAQ :), an increase of 4.6%.
There was little FedEx in corporate earnings (happily, NYSE 🙂 fell 3.5% after the global airfreight delivery company announced lukewarm forecasts.
Market earnings news fell to Micron Technology (NASDAQ 🙂 after a mixed quarterly result with a moderate beat on the bottom line but a top-of-line bust some chip manufacturers were worried that falling memory demand could significantly impact performance.
Micron has risen by about 27% since the beginning of the year and has been instrumental in helping the broader semiconductor sector make gains of more than 20% this year.
Top S & P 500 Today: Winners and Losers:
Netflix (NASDAQ :), Pioneer Natural Resources (NYSE 🙂 and Twitter (NYSE 🙂 were among
Viacom B (NASDAQ :), KeyCorp (NYSE :), and Brighthouse Financial (NASDAQ 🙂 were among the worst performing S & P 500 performers in the session.