Stocks close mixed on mixed FOMC interpretations
U.S. stocks were volatile over the Fed today, but have ended slightly lower as markets finally weigh up the meeting as more hawkish than less dovish.
The FOMC have explained that risks to the economic recovery have diminished, signaling to markets that they are preparing to hike rates due to improving economic conditions that could justify an interest-rate hike as soon as September. However, there are positioning in the markets that tell a different story and stocks were able to rally on such uncertainty.
Finally, the S&P 500 shed just 3 points or was down by 0.1% to finish at 2,166. The Dow closed flat at 18,472 while the Nasdaq finished higher by 30 points, or 0.6%, to close at 5,139.
Economic data has been improving in the US economy but today's durable-goods orders were a disappointment for June at -4.0% vs -1.1% expected.
Markets now await the BoJ tomorrow and US GDP on Friday while Fed speak next week will likely repeat the same mantra of the Fed.