The Fed raised interest rates as expected and gave a bullish view of the U.S. economy
U.S. stocks swung lower, as traders reacted to the latest Fed policy decision. The central bank raised interest rates for a third time this year, as expected, while lifting its outlook for the U.S. economy and removing the "accommodative" phrasing from its post-meeting statement. Meanwhile, in a subsequent press conference, Fed Chair Jerome Powell said a surprise jump in inflation isn't in the central bank's forecasts. The Dow, S&P 500 Index, and Nasdaq all rose to session highs following the announcement, though those gains quickly evaporated, sending all three indexes into negative territory.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 26,385.28) spiraled lower in the final hour of trading, pressured by big losses from financial stocks, ending down 106.9 points, or 0.4%. Only eight of the 30 Dow components had a winning session, with IBM (IBM) taking the top spot with its 1.8% rise. American Express (AXP) paced the losers, down 1.7% at the close.
The S&P 500 Index (SPX - 2,905.97) fell 9.6 points, or 0.3%, and the Nasdaq Composite (IXIC - 7,990.37) shed 17.1 points, or 0.2%.
The Cboe Volatility Index (VIX - 12.89) moved up 0.5 point, or 3.8%.
5 Items on our Radar Today
- Ford (F) CEO James Hackett said President Donald Trump's metal tariffs could cost the company $1 billion in profits. Honda's executive vice president of North America provided similar comments, saying steel tariffs have increased annual costs by "hundreds of millions of dollars." (Reuters)
- Facebook (FB) today announced the new Oculus Quest, a virtual reality headset that doesn't require a computer. The device will go on sale next spring for $399. (Business Insider)
- Why UBS is buying IBM stock.
- The drug stock that exploded higher on trial data.
- One analyst is targeting this red-hot retail stock for Q4.
Data courtesy of Trade-Alert
Crude Futures Fall After Inventory Update
Oil prices dipped following a surprise increase in weekly domestic crude inventories. November-dated crude futures slid 71 cents, or 1%, to $71.57 per barrel.
Gold prices fell today, with December-dated gold futures ending down $6, or 0.5%, at $1,199.10 per ounce -- a roughly three-week low. However, gold prices edged up after hours following the rate hike.