Wall Street wavers as Federal Reserve holds key rate steady, pending more data
SPY•The Federal Reserve held its key rate unchanged and upgraded its economic outlook, while noting inflation remains elevated. The Dow rose 0.15%, the S&P 500 gained 0.10% and the Nasdaq fell 0.11%.
1. Fed holds rates steady
Wall Street stocks pared gains after the Federal Reserve left its key policy rate unchanged, as widely expected. The Fed upgraded its assessment of the economy while acknowledging that inflation “remains elevated.”
2. Markets await more data
Financial markets priced in an 86.0% likelihood of a 25-basis-point rate hike at the Fed’s next meeting in December, up from 78.3% on Tuesday. Investors were awaiting the Commerce Department’s Personal Consumption Expenditures report and an advance estimate of third-quarter GDP, both expected Thursday.
3. Indexes mixed
The Dow rose 80.97 points, or 0.15%, to 52,458.54, and the S&P 500 gained 7.84 points, or 0.10%, to 7,730.44. The Nasdaq Composite fell 29.52 points, or 0.11%, to 26,447.66.
