• The S&P 500 closed lower on Thursday following big gains in the previous session as investors digested the latest monetary policy decision from the Federal Reserve.
The broad index pulled back 0.25 percent to 2,806.83 as energy lagged, snapping a three-day winning streak. The Nasdaq Composite also fell 0.5 percent to 7,530.88 as Qualcomm shares fell sharply. The Dow Jones Industrial Average eked out a small gain, however, climbing 10.92 points to 26,191.22 to post a four-session winning streak.
• The Fed kept interest rates unchanged, as was widely expected. However, the central bank said in a statement it expects “further gradual increases” in the overnight rate. The Fed also did not mention the volatility that has hit the market recently.
• “Generally, after the midterms, the market is very positive,” said Peter Mallouk, president and CEO of Creative Planning. “It’s reacting to a sense of clarity.”
The result also leaves the door open for bipartisan cooperation on infrastructure. Both Trump and Democrats have expressed interest in pushing forward an infrastructure measure.
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• Stocks in Asia were cautious in morning trade after the U.S. Federal Reserve left interest rates unchanged at its latest policy meeting.
Japan's Nikkei 225 was largely flat while the Topix index saw gains of 0.11 percent. South Korea's Kospi rose 0.16 percent.
• In Australia, the ASX 200 was slightly higher in the morning, with the major sectors in mixed territory. Energy stocks fell by 0.7 percent while the heavily weighted financial subindex gained 0.45 percent.
• The mainland China markets, which are due to open at 9:30 a.m., will be closely watched as trade tensions between Washington and Beijing continue to weigh on investor sentiments.
• One economist warned that relations between the U.S. and China could get more frosty now that the midterm elections stateside are over.
Reference: CNBC
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