· S&P 500, Dow finish lower in volatile trade on dour Fed forecasts
The Dow and S&P 500 ended a choppy session lower on Wednesday after the Federal Reserve reassured investors of its support for the economy but projected a 6.5% decline in gross domestic product this year.
The Dow Jones Industrial Average .DJI fell 282.31 points, or 1.04%, to 26,989.99, the S&P 500 .SPX lost 17.04 points, or 0.53%, to 3,190.14 and the Nasdaq Composite .IXIC added 66.59 points, or 0.67%, to 10,020.35.
The S&P 500 was off as much as 0.8% before the Fed statement.
The Fed’s pledge to keep monetary policy loose until the U.S. economy is back on track repeats a promise made early in the central bank’s response to the coronavirus pandemic.
· Dow futures fall 200 points following two days of losses
Stock futures fell in overnight trading on Wednesday as investors evaluate the pace of economic recovery and the coronavirus developments.
Futures on the Dow Jones Industrial Average dipped about 200 points, and the S&P 500 and the Nasdaq 100 futures fell 0.7% and 0.5%, respectively.
· Asia Pacific stocks lower as Fed signals no rate hikes through 2022; Netease’s Hong Kong debut ahead
Stocks in Asia Pacific traded lower Thursday morning after the U.S. Federal Reserve indicated on Wednesday that it would keep interest rates near zero through 2022.
The Nikkei 225 dropped 1.18% in early trade while the Topix index slipped 0.99%. Over in South Korea, the Kospi dipped 0.45%.
Shares in Australia also saw declines, with S&P/ASX 200 trading 0.67% lower.
Overall, the MSCI Asia ex-Japan index traded 0.22% lower.
Investor reaction to the Fed’s recent economic forecast was watched on Thursday. The U.S. central bank kept interest rates unchanged on Wednesday and indicated it does not expect to raise them through 2022. The Fed also expects the U.S. economy to contract by 6.5% in 2020 before expanding by 5% in 2021.
Meanwhile, shares of Chinese internet giant NetEase will be watched as they make their Hong Kong debut on Thursday.
Reference: CNBC, Reuters
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