Highlights
Equities ended mixed but mostly lower Wednesday after gains on Federal Reserve policy news proved short-lived. The Dow Jones industrial average firmed 0.2 percent while the S&P 500 and the Nasdaq both lost 0.3 percent. Bond yields declined, the dollar rose, and oil prices slumped.
On a big macro news day, equities perked up and yields declined after Fed Chair Jerome Powell said it was unlikely the Fed's next move would be a rate hike. Powell also downplayed stagflation fears that have plagued the market lately, and suggested the Fed would be patient in its policy stance. Earlier, the Fed left rates on hold as expected but added language noting lack of further progress toward the 2 percent inflation objective. The stock market gains evaporated in a round of selling into the close as bond yields rebounded.
Among sectors, best performers included communications services, utilities, materials, financials and real estate. Amazon was a notable gainer after its quarterly results, Lagging were energy, consumer staples, information technology and consumer discretionary. Energy suffered as oil prices tanked following an unexpected build in U.S. oil inventories. Tech stocks were hurt by weakness in chipmakers after disappointing guidance on AI chip sales from Advanced Micro Devices.
On a big macro news day, equities perked up and yields declined after Fed Chair Jerome Powell said it was unlikely the Fed's next move would be a rate hike. Powell also downplayed stagflation fears that have plagued the market lately, and suggested the Fed would be patient in its policy stance. Earlier, the Fed left rates on hold as expected but added language noting lack of further progress toward the 2 percent inflation objective. The stock market gains evaporated in a round of selling into the close as bond yields rebounded.
Among sectors, best performers included communications services, utilities, materials, financials and real estate. Amazon was a notable gainer after its quarterly results, Lagging were energy, consumer staples, information technology and consumer discretionary. Energy suffered as oil prices tanked following an unexpected build in U.S. oil inventories. Tech stocks were hurt by weakness in chipmakers after disappointing guidance on AI chip sales from Advanced Micro Devices.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
