Stocks mixed as market digests Fed cut announcement – .

Stocks mixed as market digests Fed cut announcement – .

Shares gained on Wednesday afternoon as investors digested a key Federal Reserve monetary policy decision, which included a formal announcement that the central bank will begin cutting its asset purchases in the era of the pandemic.
The S&P 500, the Dow and the Nasdaq each hit all-time highs for another session. As was widely expected, the Federal Reserve said on Wednesday it would begin to slow the pace of purchases as part of its crisis asset purchase program starting this month. This had been one of the main tools helping to support economic recovery and financial markets during the pandemic. This asset purchase program has taken place with $ 120 billion in mortgage-backed securities and treasury bills per month over the past year.

“In light of the further substantial progress that the economy has made towards the Committee’s goals since last December, the Committee has decided to start reducing the monthly pace of its net asset purchases by $ 10 billion for securities of the Treasury and $ 5 billion for agency mortgage-backed securities. According to the FOMC press release.

“Starting this month, the Committee will increase its holdings of treasury securities by at least $ 70 billion per month and agency mortgage-backed securities by at least $ 35 billion per month.” , he added. “Starting in December, the Committee will increase its holdings of treasury securities by at least $ 60 billion per month and agency mortgage-backed securities by at least $ 30 billion per month. ”

With the tapering announcement now made, the bigger question for market participants is when the Fed will start raising interest rates. The Fed’s latest monetary policy decision will not be accompanied by updated projections on the outlook for interest rates from policymakers. However, after the last Fed meeting, the outlook showed a divided committee for next year, with nine members seeing no rate hikes by the end of next year while the remaining nine members saw at least a rise.

Still, lingering stronger than expected inflationary pressures in the recovering economy have put the Fed in a difficult position when it comes to waiting for rate hikes, many economists have argued. These high levels of inflation could push the Fed to raise rates faster than previously wired, some argued. And in the Fed’s latest policy statement on Wednesday, the central bank slightly updated its remarks on inflation, saying “inflation is high, largely reflecting factors that are expected to be transient.” In September, the Fed said inflation was “high, largely reflecting transient factors.”

“The credibility of the Fed will be enhanced if Mr. Powell does not have to return to the press conference platform in December, January and March and must again explain why inflation has risen again,” Ian wrote. Shepherdson, chief economist at Pantheon Macroeconomics. in a note ahead of Wednesday’s decision. “The danger has increased that the Fed will be forced to accelerate the reduction of an insurance hike next spring, or even a sustained tightening of the inflation hunt later in the year. “

Elsewhere, investors continued to watch a slew of new quarterly results from large companies. Earlier this week, major stock indexes were supported by a prolonged streak of better-than-expected earnings results.

Some of the last names that reported results continued that winning streak. Shares of Lyft (LYFT) gained after the rideshare company posted third quarter revenue and profits, excluding some items, which exceeded expectations, with a rebound in drivers and ridership helping to improve results. Food giant Mondelez (MDLZ) also presented third quarter results and annual forecasts that were better than estimated. In other corporate developments, Bed Bath & Beyond (BBBY) announced a new partnership with Kroger and plans to step up its share buybacks, and the stock jumped early in the session.

Other companies, however, resisted the positive trend of stronger-than-expected earnings and forecasts. Shares of Activision Blizzard (ATVI) fell late in the day after the video game company issued weak guidance for the current quarter, and Match Group (MTCH) slipped as the lingering impacts of COVID in Asia also clouded his outlook.

4:03 p.m. ET: Stocks hit new all-time highs after Fed announces start of slowdown as economic recovery progresses

Here are the main moves in the markets at 4:03 p.m. ET:

  • S&P 500 (^ GSPC): +29.91 (+ 0.65%) to 4,660.56
  • Dow (^DJI): + 104.95 (+ 0.29%) to 36,157.58
  • Nasdaq (^IXIC): +161.98 (+1.04%) to 15,811.58
  • Brut (CL=F): -4.04 $ (-4.81%) to 79.87 $ per barrel
  • Or (CG=F):-$ 15.50 (-0.87%) to $ 1,773.90 per ounce
  • 10-year cash flow (^TNX): +3 bps for a yield of 1.5790%

9:30 a.m. ET: Stocks open lower as market watches Fed

Here are the main moves in the markets at 9:35 a.m.ET:

  • S&P 500 (^ GSPC): 4 627,80, -2,85 (-0,06%)
  • Dow (^DJI): 36 014,67, -37,96 (-0,11%)
  • Nasdaq (^IXIC): 15 620,03, -29,57 (-0,19%)
  • Brut (CL=F): $ 81.44 per barrel, $ 2.47 (-2.94%)
  • Or (CG=F): 1 769,50 $ l’once, -19,90 $ (-1,11 %)
  • 10-year cash flow (^TNX): flat, for an efficiency of 1.5440%

8:15 a.m.ET: Private sector payrolls in the United States surpassed estimates in October: ADP:

U.S. private employers added more jobs than expected last month, reflecting an accelerating pace of hiring as more service-oriented companies brought in workers to meet high demand.

Private payrolls increased by 571,000 in October from September, ADP said in its closely watched monthly report. Consensus economists were looking for an increase of 400,000 jobs, according to Bloomberg data. As of the month earlier, private payrolls had risen by a revised downward 523,000 from the previously reported 568,000.

7:16 a.m. ET Wednesday: Stock futures mixed ahead of Fed meeting

Here’s where the shares were trading on Wednesday morning before the opening bell:

  • S&P 500 Futures Contracts (ES = F): -4.75 points (-0.1%), to 4,618.75
  • Dow Futures (YM=F): -48 points (-0.13%), at 35,890.00
  • Nasdaq Futures (NQ = F): +8 points (+ 0.05%) at 15,969.25
  • Brut (CL=F): $ -2.05 (-2.44%) to $ 81.86 per barrel
  • Or (CG=F): – $ 4.90 (-0.27%) to $ 1,784.50 per ounce
  • 10-year cash flow (^TNX): -1.6 bps for a yield of 1.531%

6:03 p.m. ET Tuesday: Stock futures drift sideways

Here’s where the markets were trading at the start of the overnight session:

  • S&P 500 Futures Contracts (ES = F): -2.25 points (-0.05%), at 4,621.25
  • Dow Futures (YM=F): -19 points (-0.05%), to 35,919.00
  • Nasdaq Futures (NQ = F): -11.5 points (-0.07%) to 15,949.75
NEW YORK, NEW YORK – SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In the afternoon, the Dow Jones fell more than 250 points as investors continued to worry about inflation, wages and supply chain issues. (Photo by Spencer Platt / Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter


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