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Dow Moves Positive after Fed Rate Decision

T.BCE

Stocks closed little changed on Wednesday after the Federal Reserve failed to signal it will cut rates again in 2019, disappointing traders.

The Dow Jones Industrials recovered 16 points to 27,126.80

The S&P 500 gained 1.03 points to 3,006.73.

The NASDAQ Composite subtracted 8.62 points to 8,156.13.

The major indexes are within striking distance of record set in July. The Dow and S&P 500 were about 1% from their all-time highs. The NASDAQ was 2.2% below its record.

FedEx slashed its fiscal 2020 earnings guidance. The company also posted weaker-than-expected quarterly results, citing “a weakening global macro environment driven by increasing trade tensions.” FedEx shares dropped 13.8%.

The U.S. central bank cut the overnight rate by 25 basis points to a range of 1.75% to 2%, as was widely expected. This is the second time this year the Fed has lowered rates.

However, the Fed was divided in its decision to lower rates, with three officials dissenting. Central bank officials are also split on further action this year.

Prices for the benchmark 10-year U.S. Treasury moved up, lowering yields to 1.80% from Tuesday's 1.81%. Treasury prices and yields move in opposite directions

Oil prices backtracked $1.26 to $58.08 U.S. a barrel.

Gold prices deleted $12.70 to $1,500.70 U.S. an ounce.



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