Equities fell before the release of the Federal Reserve's recent policy decision.
Investors also digested Fedex's (FDX) disappointing forecast, which mentioned the quarterly results of weaker global trade growth in a quarterly report. [1
The Federal Open Market Committee (FOMC) closes its two-day meeting on Wednesday The latest policy statement will be released at 14:00 ET. The markets have widely priced in the result that the reference rate will remain unchanged at between 2.25% and 2.5%. The CME Group's FedWatch tool pointed to a 98.7% probability of an unchanged target range for Wednesday morning and a 1.3% chance that interest rates would be lowered by 25 basis points.
Given the unchanged interest rates seen after FOMC's March meeting, market participants are more interested in the Fed's dot plot and comments on its balance sheet normalization process.
The Fed's latest dot plot, a chart showing FOMC members' target rates for the short and long term, is expected to suggest a median of a rate hike in 2019. This is less than two points suggested in the December dot chart.
The normalization process of the central bank will also be an interesting point.
Investors are seeking a timetable for the Fed to either end or slow down the long-term treasury and mortgage-backed securities that it has maintained on its balance sheet since the end of the financial crisis. This was a key concern of investors who feared that the shrinkage would affect market liquidity.
However, the Fed said after its January meeting that it was "willing to adjust all the details to complete the normalization of the balance sheet given the economic situation." and financial developments. "These comments contributed to stocks rising after the last Fed meeting.
Bond yields had largely fallen before the release of the Fed's latest policy statement. The yield on the 10-year note, which moves inversely to the price, fell 1.8 basis points to 2.594%, while the two-year yield fell Wednesday morning by 1.1 basis points to 2.458%.
World Growth Signals
FedEx was as much in focus as the Fed after the courier company led the weak global growth as the cause of disappointing third quarter revenue and the second annual earnings decline in three months. Shares fell more than 6% around the open market.
FedEx, which reported closing results Tuesday, said its full-year adjusted earnings range from $ 15.10 to $ 15.90, just ahead of consensus economists' estimated $ 16.03. FedEx third-quarter earnings also missed the consensus estimates by 9 cents, and quarterly revenue of $ 17 billion slightly exceeded the expected $ 17.66 billion.
a call with investors Tuesday
Meanwhile, for the first time in three years, the Japanese government has lowered its view of the economy, rendering the US-China trade war weak exports and industrial production.
According to Japan's Cabinet Office Japanese report, the Japanese economy is recovering "at a moderate pace, while some sectors have recently seen weakness in exports and industrial production."
The report added: "Attention The implications of the trade-related situation on the world economy, the prospects of the Chinese economy, the uncertainty surrounding the situation and policies in the overseas economies and the impact of fluctuations in the financial and capital markets should be taken into account.
Elsewhere, British Prime Minister Theresa May has addressed a letter to the President of the European Council, Donald Tusk, requesting an extension of Brexit to British lawmakers last week extending the departure beyond the original 29 March deadline and avoiding a no-deal departure.
In this letter, May requested an extension of the Brexit trial by June 30 and said she would return her deal to another vote in parliament. The British pound fell against the US dollar (GBPUSD = X) after publication of the text to about 1.31 US dollars.
<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " General Mills ( GIS ) reported higher than expected net sales adjusted earnings and gross margin for the third quarter and forecast for adjusted net income for the year increased, causing stocks to rise in early trading "data-reactid =" 50 "> General Mills ( GIS ) reported better than expected net sales adjusted earnings and gross margin for the third quarter and raised its guidance for adjusted annual profit, prompting shares to trade early.
The packaged food business posted adjusted earnings of $ 83 for the third quarter, with net sales of $ 4.2 billion. At 34.2%, the gross margin was 130 basis points above expectations. General Mills expects the EPS adjusted for the 2019 financial year to be flat at 1% from $ 3.11 earned in the 2018 financial year, compared to a 3% decline in the previous quarter.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Google (19659026)  was fined by the European Commission for violating its online advertising practices with 1.5 billion euros ($ 1.7 billion "data-reactid =" 52 "> Google (19659026), (19659026), which was listed in the alphabet by Google (19659026) (19659026) with a fine  amounting to 1.5 billion euro ($ 1.7 billion) from the European Commission for antitrust violations in online advertising.
The commission, which has hit fines of around € 8.25 billion in three key cases since 2017, told Google that site publishers would not hire advertisers from search engine competitors.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Emily McCormick is reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck "data-reactid =" 55 "> Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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