- US stocks traded mixed Wednesday as investors awaited the Federal Reserve’s next round of economic guidance.
- While the Dow Jones industrial average edged lower, the tech-heavy Nasdaq added to a record close on Tuesday.
- Investors looked past a report from the OECD saying that the coronavirus pandemic has triggered the worst recession in nearly a century.
- Read more on Business Insider.
US stocks traded mixed on Wednesday as investors awaited the next round of economic guidance from the Federal Reserve.
Investors expect that the Fed will hold its target interest rate near zero, and make no other major changes to the many policy tools it’s used to fight coronavirus. Still, market participants will be watching closely for signs of further economic stimulus. The meeting concludes Wednesday, and Chair Jerome Powell will give remarks at 2:30 p.m. ET.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Wednesday:
- S&P 500:3,209.01, up 0.1%
- Dow Jones industrial average: 27,192.87, down 0.3% (79 points)
- Nasdaq Composite:10,021.38, up 0.7%
Hopes that the Fed will stay the course overshadowed a dismal report from the OECD confirming that the coronavirus pandemic triggered the worst global recession in nearly a century. The organisation expects that global economic output will slump by 6% this year, and will take a bigger hit if there’s a second wave of COVID-19.
The tech-heavy Nasdaq, which closed at a record high on Tuesday, continued to gain Wednesday. The increase was led by the so-called FAANG cohort consisting of Facebook,Apple,Amazon,Netflix, and Google parent Alphabet. The heavily weighted group has outperformed the broader market since the late-March market bottom.
Crude oil prices declined Wednesday ahead of weekly data that shows the size of US stockpiles from the Department of Energy.West Texas intermediate crude fell as much as 3.1%, to $US37.73 per barrel. International benchmark Brent crude slipped 2.5%, to $US40.14 per barrel, at intraday lows.
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