Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Slips as Fed Decision Looms

Stock MarketsJun 16, 2021 18:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 was sluggish Wednesday as investors kept their powder dry with under an hour to go until the Federal Reserve’s decision.

The S&P 500 fell 0.27%, and the Dow Jones Industrial Average was down 0.41%, or 141 points, and the Nasdaq Composite was down 0.1%.

The Fed isn’t expected to announce major policy tweaks, with its benchmark rate and monthly bond purchases of $140 billion expected likely to remain on hold. “We do not believe the Fed will offer any new clues around the timing of tapering nor on implementation mechanics at the upcoming meeting,” Wells Fargo (NYSE:WFC) said in a note.

But further clues on how much progress the economy has made toward the Fed’s goals will garner investor attention. “We anticipate this [progress] to be reflected in the updated summary of economic projections along with the views from participants on the federal funds rate level over the next few years,” Wells Fargo added.

Treasury yields will be closely watched as a barometer of investor confidence in the Fed’s message as sluggish action in rates have been taken a sign the market is backing the Fed’s outlook on the economy and inflation.

"On a dovish Fed statement, maybe the Treasury curve sells off a little bit. Growth names, typically do well when treasuries prices rally (yields decline), and the cyclical, more value type stocks, not do as well,” Peter Duffy, chief investment officer of credit at Penn Capital Management told Investing.com in an interview Tuesday.

Ahead of the Fed decision the 10-year Treasury yield was below 1.49% and tech was largely flat.

Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL),  Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB) were mixed.

Oracle (NYSE:ORCL), meanwhile fell 5% after its softer second-quarter guidance offset first-quarter results that beat on both the top and bottom lines.

Cyclicals, which tend to move in tandem with an improving economy, were under pressure, with financials and materials, the worst performing sectors on the day.

Energy stocks were 1% lower as oil prices pared some of their recent gains, though remained close to October 2018 highs, as weekly U.S. crude stockpiles fell more than expected.

Crude oil inventories fell 7.355 million barrels last week, compared with analysts' expectations for a draw of 3.29 million barrels.

In other news, Roblox (NYSE:RBLX) slumped 8% on signs the reopening is denting demand for gaming. The video game platform reported 43 million daily active users for May, up 28% compared to a year earlier but down from 43.3 million in April.

S&P 500 Slips as Fed Decision Looms
 

Related Articles

Electronic Arts Results Beat in Q1
Electronic Arts Results Beat in Q1 By Investing.com - Aug 04, 2021

By Yasin Ebrahim Investing.com - Electronic Arts (NASDAQ:EA) raised its outlook on revenue after reporting Wednesday first-quarter results that beat analysts' forecasts, driven by...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email