Stock market today
A mixed close for the US stock market today. Tech stocks underperformed, Nasdaq fell more than 130 points, Dow Jones gained about 37 points. Small-cap stocks outperformed.
S&P 500: 3,385.49,-15.71(-0.46%)
Dow 30: 28,032.38,+36.78(+0.13%)
Nasdaq: 11,050.47,-139.86(-1.25%)
Russell 2000: 1,552.33,+14.17(+0.92%)
Stock market data: Yahoo Finance
Stock market news
“Stocks erased earlier gains and turned mixed Wednesday afternoon as investors considered the Federal Open Market Committee’s (FOMC) September monetary policy statement and remarks from Federal Reserve Chair Jerome Powell. Officials signaled that rates would remain near-zero through 2023, as policymakers look to boost the virus-stricken economy.
In its monetary policy statement Wednesday, central bank officials reiterated that “the path of the economy will depend significantly on the course of the virus.”
“The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” according to the statement.
With the virus continuing to anchor growth, policymakers released new forecasts reflecting their expectation that rates would remain historically low in order to support economic activity. The Fed’s updated Summery of Economic Projections released Wednesday showed US central bank officials anticipate that rates will remain near zero through 2023, the longest duration included in their projections.
Still, the Fed’s outlook for the contraction in US economic activity became slightly less dire following their September meeting. The Fed forecast a 3.7% contraction in real GDP and an unemployment rate of 7.6% by the end of the year, versus its June outlook for a 6.5% GDP contraction and jobless rate of 9.3%.
The Fed added that it would continue its current Treasury and mortgage-backed securities purchases “at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions.”
Market participants also considered Fed Chair Powell’s remarks following the release of the monetary policy statement. In these, Powell again nudged for congressional lawmakers to pass more legislation targeted directly at helping Main Street businesses and households, with the initial faster-than-expected economic recovery in recent months threatened as enhanced unemployment benefits and other direct support measures expired. Both Powell and other FOMC members have repeatedly underscored the importance of fiscal policy in tandem with monetary policy as being essential to the economic recovery.”
Stock market data: Yahoo Finance
