Julius Shakari, from California with full equipment, takes pictures with his friend in front of the Charging Bull, sometimes called the Wall Street Bull, a bronze sculpture in the Manhattan financial district, New York, May 19, 2020.
Timothy A. Clary AFP | Getty images
US stock futures were fixed on Wednesday night as traders took on the Federal Reserve̵
The Dow Jones industrial average is trading 6 points lower, or 0.02%. The futures of the S&P 500 and Nasdaq 100 were also slightly lower.
Members of the Federal Open Market Committee said the US overnight interest rate could remain at zero until 2023 as the central bank tries to boost inflation. In a statement, the commission said: “As inflation is constantly moving below this longer-term target, the Committee will aim to achieve inflation moderately above 2% over time, so that inflation averages 2% over time.”
Federal Reserve Chairman Jerome Powell reiterated this position at a press conference, saying that easy monetary policy will remain “until these results, including maximum employment, are achieved.”
He also said parts of the US economy will continue to struggle unless lawmakers move forward with additional fiscal stimulus. Powell’s comment came as lawmakers struggled to reach a deal on a new coronavirus aid bill. Earlier Wednesday, White House chief of staff Mark Meadows said he was optimistic a deal could be made.
Usually, the prospect of lower interest rates over a long period of time stimulates the purchase of shares. However, this was not the case on Wednesday.
The S&P 500 and Nasdaq closed lower, and the Dow finished well after their session. Big Tech pulled the S&P 500 and Nasdaq, with Apple, Facebook and Microsoft closing lower.
“Major indexes fell to their short-term trading range following Fed reports, confirming that the bulls are not yet out of the woods,” said Ken Berman, founder of Gorilla Trades. “Although there was nothing scary about the Fed’s announcements today, stocks reacted in a bearish way, especially in the technology sector.”
On Thursday, Wall Street will receive the latest look at US weekly unemployment claims. Housing startup data in the United States is also set for release.
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