S&P 500, Nasdaq end lower after Fed rate decision, Powell press conference
Federal Reserve left its key interest rate unchanged, as expected, and indicated that while its next move will likely be a rate cut, continued progress on inflation is not assured.
The S&P 500 and the Nasdaq ended lower while the Dow Jones Industrial Average notched a modest gain.
The Federal Open Markets Committee concluded its two-day monetary policy meeting with a unanimous decision to let the Fed funds target rate stand at 5.25%-5.50%.
The accompanying statement left the timing of any rate cut in doubt, and Fed officials underscored their concern that the first months of 2024 have done little to build the confidence they seek in falling inflation.
At the subsequent press conference, Fed Chair Jerome Powell suggested that while the central bank remains focused on bringing inflation back to its 2% target, he noted progress toward that goal and dismissed the notion of an imminent rate hike.
«Powell didn't rock the boat very much,» said Ryan Detrick, chief market strategist at Carson Group in Omaha. «He acknowledged that inflation is still a problem but remained optimistic that it will improve over the coming quarters.»
«What sparked today's rally was when he said the next move will not be a hike,» Detrick added. «He pushed back against that, hard.… That allowed the bulls to take charge.»
Powell said the labor market was normalizing, citing data released on Wednesday showing job openings dropping to a three-year low.
First-quarter reporting season has breezed passed the halfway point, with 310 of the
