JABAR EKSPRES – Stocks on Wall Street were mixed in late morning trading Thursday (6/15), after the Federal Reserve kept its benchmark interest rate unchanged, pausing its tightening cycle but signaling more rate hikes to come this year.
The Dow Jones Industrial Average slipped 232.79 points, or 0.68 percent, to settle at 33,979.33 points. The S&P 500 Index added 3.58 points, or 0.08 percent, to end at 4,372.59 points. The Nasdaq Composite Index rose 53.16 points, or 0.39 percent, to close at 13,626.48 points.
Seven of the 11 major sectors of the S&P 500 ended in the red, with the energy and health sectors leading the decline, each losing 1.12 percent. Meanwhile, technology and consumer staples stocks led the gainers up 1.14 percent and 0.56 percent, respectively.
US stocks closed mixed after recovering early losses when the Fed kept its benchmark interest rate unchanged, but signaled the possibility of continuing its rate-hike campaign until later this year.
Read more: US Federal Reserve Halts Interest Rate Hikes
The Fed’s decision left the benchmark interest rate within its target range of 5.0 percent to 5.25 percent, but is expected to raise rates to as high as 5.6 percent by the end of the year. Wednesday’s monetary policy decision (6/14/2023) was interpreted by markets as signaling a hawkish pause (monetary tightening).
Fed Chair Jerome Powell said at a press conference that a decision on the next policy meeting in July has not been made, but he indicated more rate hikes may be on the way as “nearly all policymakers see further increases this year as appropriate.”
US stocks initially fell after the Fed tried to deliver a very hawkish leap. The unanimous vote to halt the Fed’s rate hike campaign also included a very hawkish plot point. Wall Street was not happy with the Fed’s super hawkish projections, said Edward Moya, senior market analyst at OANDA, a supplier of multi-asset online trading services.
