By Medha Singh and Shreyashi Sanyal
(Reuters) – Wall Street's main indices fell on Wednesday following a weak outlook from economic bellwether FedEx Corp (NYSE 🙂 and on trade worries while Investors waited for more clarity on the Federal Reserve's interest rate forecast.
In a knee-jerk reaction, stocks hit an increased downturn after President Donald Trump said tariffs could remain in China for a long time, but pared some of the losses shortly after. Trump also said a trade deal with Beijing was on its way, with US dealerships soon to China.
The central bank is expected to keep the fed fund price stable and reduce the number of increases expected for 201[ads1]9 as it breaks up a two-day policy meeting, followed by a statement and a press conference.
The policy statement, due at 14:00 ET, will also shed light on long-awaited details of Fed's plans to stop reducing its holdings of government bonds.
"The big picture today is the Fed meeting. Investors are slowly moving to the sidelines because all the good news is already baked and they just want the Fed confirmation that" everything is good, "says James Hickey, chief Investment Strategist on HD West in Irving, Texas.
"People tend to overestimate the impact of not getting a deal done with China, Hickey says.
FedEx Corp. dropped 5.5 percent after the package vendor cut its forecast for 2019 for the second time to slow down global growth in trade.
FedEx drove the Dow Jones Transport down 1.93 percent and the index, which is closely monitored to measure the health of the economy, was at pace for the largest percentage decline over nearly two months.
Expectations of a bold Fed Fed pushed down the price-sensitive financial stocks down 1 percent, mostly in 11 major S&P sectors. The bank's subsector fell 1.02 per cent.
kl. 12:52 p.m. ET was down 169.30 points, or 0.65 percent, to 25,718.08. It was down 15.46 points, or 0.55 percent, of 2,817.11 and it was down 35.86 points, or 0.46 percent, of 7,688.09.
Higher oil prices kept the energy stocks floating while gains in Facebook Inc (NASDAQ:) and the alphabet (NASDAQ 🙂 Inc encouraged the communications service sector.
Optimism that the Fed will remain patient in raising borrowing costs and hopes that the United States and China will solve their trade spurt helped US stocks erase most of their losses from late last year.
The benchmark index S & P 500 remains 4 percent away from its record high in September.
General Mills Inc (NYSE 🙂 jumped 3.8 percent, mostly at S & P after Cheerio's cereal producer increased its full-year forecast.
Decline in outstanding challenges for a 2.57-to-1 ratio on the NYSE and a 2.60 to 1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and two new downs, while Nasdaq recorded 28 new heights and 32 new downs.
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