US stocks move sideways, shruggging off low-key Fed meeting / Photo: PHILIPPE HUGUEN - AFP
NYSE - LSE
US stocks move sideways, shruggging off low-key Fed meeting
Wall Street stocks finished little changed Wednesday after the Federal Reserve kept interest rates unchanged, while the dollar rebounded somewhat from the prior session's slide.
The Fed, as expected, voted to maintain rates at a range between 3.50 percent and 3.75 percent. Fed Chair Jerome Powell said the status-quo move made sense as the central bank monitors economic data after cutting three straight times due to signs of a weakening labor market.
Major US indices, which were directionless prior to the 1900 GMT Fed announcement, moved in a choppy fashion after the decision.
The S&P 500 finished nearly flat at 6,978.03 after earlier touching above 7,000 points for the first time.
The market had "almost zero reaction" to the Fed, said Art Hogan of B. Riley Wealth Management
"The statement and the press conference really delivered no news," Hogan said Wednesday afternoon shortly before earnings announcements from Microsoft and other large companies.
The dollar recovered some of its losses from the prior session, when comments from US President Donald Trump seeming to greet a weaker US currency, sending the dollar to a four and a half year low against the euro.
But the strengthening euro was among the factors that dragged on European stocks.
Also weighing on Europe was a downgrade to the German government's 2026 growth forecast to one percent from 1.3 percent previously.
"The expected stimulus from economic and fiscal policy measures did not materialize quite as quickly or to the extent that we had assumed," Economy Minister Katherina Reiche told a Berlin press conference.
The CAC 40 in Paris was dragged down by renewed concerns for the luxury sector after market heavyweight LVMH posted a 13 percent slide in annual profit.
LVMH shares tumbled nearly seven percent in response, while British fashion label Burberry, traded in London, fell 4.7 percent.
Elsewhere, the price of gold struck a new peak as skittishness over the dollar pushes some investors towards the metal as a safe-haven investment.
US retail giant Amazon slid 0.6 percent after announcing that it is cutting 16,000 jobs worldwide as the company tries to streamline amid its major push into AI.
But shares in Dutch tech giant ASML, the global leader in the machines that make semiconductors, jumped after the company announced a strong rise in annual profits and a buoyant outlook, while also saying it would cut hundreds of management jobs.
- Key figures at around 2130 GMT -
New York - Dow: FLAT at 49,015.60 (close)
New York - S&P 500: FLAT at 6,978.03 (close)
New York - NASDAQ Composite: UP 0.2 percent at 23,857.45 (close)
London - FTSE 100: DOWN 0.5 percent at 10,154.43 (close)
Paris - CAC 40: DOWN 1.1 percent at 8,066.68 (close)
Frankfurt - DAX: DOWN 0.3 percent at 24,822.79 (close)
Tokyo - Nikkei 225: UP 0.1 percent at 53,358.71 (close)
Hong Kong - Hang Seng Index: UP 2.6 percent at 27,826.91 (close)
Shanghai - Composite: UP 0.3 percent at 4,151.24 (close)
Euro/dollar: DOWN at $1.1944 from $1.2041
Pound/dollar: DOWN at $1.3797 from $1.3849
Dollar/yen: UP at 153.38 yen from 152.21 yen on Tuesday
Euro/pound: DOWN at 86.56 pence from 86.94 pence
Brent North Sea Crude: UP 1.2 percent at $68.40 per barrel
West Texas Intermediate: UP 1.3 percent at $63.21 per barrel
burs-jmb/jgc
E.Mehta--MT
