U.S. stocks are falling ahead of the Fed's rate decision
By Liz Moyer
Investing.com -- U.S. stocks were falling early Wednesday as investors paused for the Federal Reserve's rate decision this afternoon.
At 9:49 ET (14:49 GMT), the Dow Jones Industrial Average was down 129 points or 0.4%, while the S&P 500 was down 0.2% and the NASDAQ Composite was down 0.2%.
Investors are being cautious ahead of today’s Federal Reserve decision on interest rates . The central bank is widely expected to raise its benchmark rate by a quarter of a percentage point.
Chair Jerome Powell will speak to reporters after the decision is announced, and investors will be listening for any clues about the Fed’s thinking heading into the year.
The Fed wants to cool the economy while avoiding a recession, and it is watching inflation as well as labor market trends while it makes its decision.
The job market cooled in January according to ADP ’s private payroll report, which showed employers added 106,000 employees last month. That was fewer than expected and below the 253,000 added in December.
While Fed officials have said they want to see the terminal interest rate rise above 5% in order to quash inflation, the market is betting that the Fed will make one more rate hike after today in March, pushing the terminal rate to 4.9%.
Corporate earnings continue to pour in. Shares of Advanced Micro Devices Inc (NASDAQ: AMD ) rose more than 6% after reporting earnings that were better than expected. Shares of video game company Electronic Arts Inc (NASDAQ: EA ) fell 12% after it cut its annual bookings forecast. Snap Inc (NYSE: SNAP ) fell 13.6% after a net loss for the fourth quarter.
Oil was mixed. Crude Oil WTI Futures were up 0.3% to $79.11 a barrel, while Brent Oil Futures were down 0.1% to $85.33 a barrel and Gold Futures were flat at $1,945.
Add Chart to Comment
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.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or