US stock markets closed with mixed signals on Wednesday, following the Federal Reserve’s decision to keep interest rates unchanged during its July meeting.
The Dow dropped 171.71 points (0.38%), finishing at 44,461.28, while the S&P 500 fell by 7.96 points (0.12%) to 6,362.9. In contrast, the Nasdaq Composite inched up by 31.38 points (0.15%) to reach 21,129.67.
Most sectors in the S&P 500 ended lower, with materials and real estate taking the biggest hits (down 1.99% and 1.43% respectively). However, utilities and technology saw slight gains (up 0.69% and 0.43%), showing some pockets of resilience amidst market fluctuations.
The Federal Open Market Committee (FOMC) voted 9 to 2 to hold the federal funds rate within the current range of 4.25% to 4.5%. This decision came despite pushback from Fed Vice Chair for Supervision Michelle Bowman and Fed Governor Christopher Waller, marking the first time since 1993 that more than one Fed governor dissented on a policy vote.
Additionally, fresh data from the US Department of Commerce revealed that the US economy expanded at an annualized rate of 3% in the second quarter, outpacing the 2.3% forecast by economists. Among major tech stocks, Apple, Tesla, Amazon, and Meta posted slight losses, while chipmakers like Nvidia and Broadcom gained around 2%, and both Microsoft and Alphabet recorded modest increases.
This blend of market movements keeps young investors and market enthusiasts on their toes as they navigate complex economic signals and ever-shifting trends 🚀.
Reference(s):
cgtn.com
