The Dow Jones Industrial Average gained 87.37 points, or 0.23%, to 37,903.29, the S&P 500 shed 17.30 points, or 0.34%, to 5,018.39 and the Nasdaq Composite slid 52.34 points, or 0.33%, to 15,605.48
A gauge of global stocks dropped on Wednesday while the dollar weakened against a basket of peers after the Fed left interest rates unchanged and hinted it is still leaning toward eventual rate cuts.
But the U.S. central bank put a red flag on recent disappointing inflation readings and suggested a possible stall in the movement toward more balance in the economy.
The Federal Reserve also announced plans to slow the speed of its balance sheet drawdown, after having spent much of the earlier part of the year warning of such a shift.
As expected, the FOMC decided to keep its key interest rate, the federal funds rate, unchanged, according to Matthais Scheiber, global head of portfolio management at Allspring Global Investments. We believe the Fed won’t cut rates until it sees weakening in prices and labour market data – probably not before fall.
On Wall Street, the S&P 500 closed marginally down in choppy trading in the wake of the Fed’s policy announcement, after each of the three major indexes closed out April with their first monthly declines since October.
The Dow Jones Industrial Average gained 87.37 points, or 0.23%, to 37,903.29, the S&P 500 shed 17.30 points, or 0.34%, to 5,018.39 and the Nasdaq Composite slid 52.34 points, or 0.33%, to 15,605.48.
Earlier, data from the ADP Employment report showed U.S. private payrolls rose more than expected in April while data for the previous month was revised higher.
But a separate report from the Bureau of Labor Statistics (BIS) in its Job Openings and Labor Turnover Survey, or JOLTS, showed U.S. job openings dropped to a three-year low in March, while the number of people quitting their jobs dropped – indications of easing labour market conditions that could potentially aid the Federal Reserve in its fight against inflation.
