US stocks dipped to session lows on Wednesday after the Federal Reserve left rates unchanged and said there are signs of labor market stabilization.
The S&P 500 Index declined 0.1% at 2:03 p.m. in New York, immediately following the rate decision. Earlier in the session, the US benchmark surpassed the 7,000-point milestone for the first time, before pulling back as declines in health-care and industrial stocks offset gains in the energy and technology sectors. The tech-heavy Nasdaq 100 Index pared gains to a 0.2% rise, while the Dow Jones Industrial Average was little changed.
Traders' attention now turns to Fed Chair Jerome Powell's remarks, scheduled for 2:30 p.m. Market participants were expecting a hold in the first Fed decision since Powell said the central bank was subpoenaed by the Department of Justice amid ongoing pressure from the White House to lower interest rates.
“We believe the greatest potential for market-moving news could come from the press conference, where politically-focused questions around the subpoena video and the Lisa Cook court case are likely,” said Josh Jamner, senior investment strategy analyst at ClearBridge Investments.
Wednesday's decision wasn't unanimous: Fed governors Christopher Waller and Stephen Miran dissented in favor of a quarter-point cut.
The afternoon moves follow a morning where stocks “came out of the gate hot,” on robust guidance from technology equipment makers, Vital Knowledge founder Adam Crisafulli wrote. Earnings in the rest of the market have been “mixed” since Tuesday's close, he added.
A big test of tech sector optimism is due after markets close, when Microsoft Corp., Meta Platforms Inc. and Tesla Inc. are all due to report earnings. Apple Inc. reports after the market closes Thursday.
Amazon.com Inc., another member of the Magnificent Seven group of megacap tech companies, said it was cutting 16,000 corporate jobs across the company in an organizational restructuring.
Still ahead this week, investors will get a data on jobless claims, durable goods orders and the US trade balance on Thursday, as well as producer prices on Friday.
ALSO READ: S&P 500 Smashes 7,000-Mark As Wall Street Powers Through Tariffs, AI Frenzy, Geopolitics
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.
