By Yasin Ebrahim
Investing.com – The Dow hit its highs Wednesday as investors weighed a technical setback and the Federal Reserve's pledge to keep rates low for an extended period.
That increased by 0.13% or 37 points. It fell 0.43%, while it slipped 1.25%.
After a strong start to the week, Tech took a breather. Apple (NASDAQ 🙂 fell 3% per day after unveiling new iPads and Apple watches, as well as a new bundled subscription service and personalized training service.
Microsoft (NASDAQ :), Facebook (NASDAQ :), Amazon.com (NASDAQ :), and Alphabet (NASDAQ 🙂 were also lower.
The weakness of the technology pushed the broader market to pull away from session highs, offsetting the reluctant announcement by Fed policy.
The Federal Open Market Committee left it unchanged in the 0% to 0.25% range and said it would target inflation above 2% for some time.
"As inflation remains below this longer-term target, the committee will try to keep inflation moderately above 2 percent for some time, so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent," said the Fed said in a statement.
The Fed's latest economic forecasts seem to support expectations that interest rates will stay lower for longer, with policymakers supporting the central bank to keep its policy rate unchanged at 0.1% through 2023.
Energy rose 4% as US oil prices rose after crude oil inventories dropped 4.4 million barrels last week, confusing expectations for 1.27 million barrels of construction.
EOG Resources (NYSE :), TechnipFMC (NYSE 🙂 and Diamondback Energy (NASDAQ 🙂 were among the top winners, with the latter gaining more than 7%.
Financials also rose, despite government bond yields rising despite the Fed's low interest rate promise.
Citigroup (NYSE 🙂 was up 2.7% while Goldman Sachs (NYSE 🙂 was up 1.3%. JPMorgan Chase & Co (NYSE 🙂 gained 0.4%.
Signs of weaker retail sales have given cause for concern about the economic recovery at a time when the prospect of further fiscal stimulus looks dim at best.
The US rose less than forecast by 0.6% in August after being revised downward by 0.9% in the previous month. The increase for August was expected to be 1%.
"The retail data for August and the downward revision of the July data show a significant slowdown in consumer demand in the summer months," said Jefferies (NYSE :). "The combination of declining financial support and a lack of demand for catch-up supplies clearly helped slow the summer down."
In other news, Snowflake (NYSE 🙂 debuted at $ 245, more than double its initial public offering at $ 120 per share, and ended the day at $ 252.
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