Julius Hunter of California, with full PPE gear, poses with his friend in front of a charging bull, known as the Wall Street Bull, known as the Bronze Sculpture in the 19th Financial District of Mehton New York.
Timothy a. Cleary | AFP | Getty Images
U.S. Stock futures were flat on Wednesday night as traders digested the Federal Reserve’s pledge to keep rates low for the next few years.
Dow Jones Industrial trades below the industrial average flatline. S&P 500 and Nasdaq 100 futures were also slightly changed.
Members of the Federal Open Market Committee hinted that the US could stay overnight Anchored at zero-bound until 2023 Because the central bank is trying to accelerate inflation. In a statement, the committee said: “As inflation continues to fall below this long-term target, the committee aims to achieve inflation above 2% in general for a short period of time so that inflation averages 2% over time.”
Reiterating the trend at a news conference, Fed Chairman Jerome Powell said, “There will be a smooth monetary policy until these results, including maximum employment, are achieved.”
He also said that parts of the US economy will struggle unless legislators move forward with more fiscal stimulus. Powell’s remarks come as legislators struggle to reach a deal on a new coronavirus aid bill. On Wednesday, White House Chief of Staff Mark Meadows said he was hopeful a deal could be struck.
In general, the prospect of long-term low rates encourages buying in equities. That was not the case on Wednesday.
Both the S&P 500 and the Nasdaq closed lower and the Dow ended well from its session highs. With T-Pal, Facebook and Microsoft all coming down, Big Tech pulled the S&P 500 and Nasdaq down.
“Following the Fed’s announcement, key indicators returned to their short-term trading range, confirming that the bulls are not out of the woods yet,” said Ken Burman, founder of Gorilla Trades. “While there was nothing frightening in today’s Fed announcements, stocks reacted in bearish fashion, especially in the tech sector.”
On Thursday, Wall Street was relocated to the U.S. Weekly job claims will get the latest look. U.S. Housing startup data is also set for release.
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