USA stocks edge lower on Fed rate move
- Author: Zachary Reyes Jun 15, 2017,
Jun 15, 2017, 13:27
The Nasdaq jumped 44.90 (+0.73 percent) to close at 6,220.37, while the S&P 500 finished at 2,440.35, up 10.96 (+0.45 percent) from its open.
The Nasdaq is down 13.03 points, or 0.2 percent. As expected, the Fed lifted interest rates for the second time this year, and in a post-meeting press conference, Fed Chair Janet Yellen said the economy is on the path to achieving the current 2% inflation target.
The U.S. central bank cited continued U.S. economic growth and job market strength, proceeding with its first tightening cycle in more than a decade. The S&P 600 Small-Cap Index closed at 861.15 for a loss of 4.92 points or 0.57%.
The Fed clearly outlined a plan to reduce its $4.2-trillion portfolio of Treasury bonds and mortgage-backed securities, most of which were purchased in the wake of the 2007-2009 financial crisis and recession.
The S&P 500 was up 0.53 points, or 0.02 percent, at 2,440.88 and the Nasdaq Composite was up 1.88 points, or 0.03 percent, at 6,222.24.
"They (Canadian banks) had a pretty good run late last week, with a flight to quality it seems a lot of the fast money came out of tech and got parked in the banks temporarily", said Bruce Latimer, a trader at Eight Capital.
US retail sales dropped 0.3% in May, the biggest decline in 16 months.
The Dow Jones Transport Average index, seen by some as a barometer of economic activity, ended down 0.7 percent.
"It's a Fed day and the markets will likely not blink an eye as the FOMC raises rates by 25 basis points", said Peter Cardillo, chief market economist at First Standard Financial in NY.
H & R Block was the biggest percentage gainer on the S&P 500, rising 8.4% after the tax preparation service posted quarterly revenue and profit that beat analysts' expectations. Among energy stocks, Halliburton climbed 2% and oil refiner Tesoro rose 3.3%.
Advancing issues outnumbered decliners on the NYSE by 1,356 to 1,247.
About 6.4 billion shares changed hands in US exchanges, below with the 6.8 billion daily average over the last 20 sessions.