U.S. stocks close little changed as Fed leaves door open

U.S. stocks close little changed as Fed leaves door open

U.S. stocks ended Wednesday with little change after the Federal Reserve raised interest rates, but the Dow continued its winning streak. The Fed’s rate hike was in line with expectations and marked the 11th increase in the past 12 meetings. Fed Chair Jerome Powell stated that the central bank will closely monitor economic data and that a rate cut is unlikely this year. Goldman Sachs expects the Fed to hold rates steady in September. The market’s reaction to the rate hike was muted, with investors not expecting any surprises. Powell’s message was that the Fed will wait for wage inflation to decrease before making any new decisions.

In terms of earnings, big tech companies had mixed reactions. Microsoft slid after announcing an aggressive spending plan for its AI-powered services, but still exceeded revenue and profit estimates. Alphabet, on the other hand, saw its shares climb after reporting better-than-expected second-quarter profit. The NYSE FANG+ index, which includes many megacap growth names, dropped, but has rallied significantly this year on optimism about AI and the Fed’s rate hikes.

The Dow Jones Industrial Average rose, supported by Boeing’s smaller-than-expected quarterly loss and surge in cash flows. This marked the Dow’s longest winning streak since 1987. However, Snap sank after giving a weaker-than-expected third-quarter forecast, struggling to compete with larger tech companies for advertising dollars. Union Pacific gained after appointing a new chief executive, and Wells Fargo climbed after authorizing a new share buyback program.

Overall, advancing issues outnumbered decliners on the NYSE and Nasdaq, and the S&P 500 and Nasdaq Composite posted new highs.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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