Renewable Energy

Wall Street pauses with Fed meeting in focus

Credit: REUTERS/BRENDAN MCDERMID

Wall Street's main indexes were flat on Wednesday, as investors refrained from taking positions ahead of the Federal Reserve's policy statement that is expected to open the door to future interest rate cuts.

By Shreyashi Sanyal

June 19 (Reuters) - Wall Street's main indexes were flat on Wednesday, as investors refrained from taking positions ahead of the Federal Reserve's policy statement that is expected to open the door to future interest rate cuts.

Bets of a rate cut have helped markets climb in June, with the S&P 500 .SPX index gaining 6% so far this month and about 1% away from its all-time high hit in early May.

The Fed's statement and new economic projections are scheduled to be released at 2 p.m. ET (1800 GMT), providing investors an opportunity to gauge the impact of a prolonged U.S.-China trade conflict, President Donald Trump's demands for a rate cut and softer-than-expected economic data on monetary policy thinking.

Fed Chair Jerome Powell will hold a press conference at 2:30 p.m. ET (1830 GMT).

The U.S. central bank will likely leave rates unchanged but is likely to indicate whether it plans to cut rates later this year. The financial sector .SPSY gained 0.63%, with bank stocks .SPXBK rising 0.76%.

"Expectations remain elevated over a rate cut in July and investors will be closely scrutinizing the statement for confirmation of a cut next month," said Lukman Otunuga, a research analyst at ForexTime Limited in London.

"Should the Fed sound less dovish than expected or completely omit any hints about taking action next month, it could send equity markets sliding."

Global financial markets have been fired up by European Central Bank President Mario Draghi's Tuesday volte-face on policy easing and as investors bet on a worldwide wave of central bank stimulus.

At 9:56 a.m. ET, the Dow Jones Industrial Average .DJI was up 58.02 points, or 0.22%, at 26,523.56 and the S&P 500 .SPX was up 2.17 points, or 0.07%, at 2,919.92.

The Nasdaq Composite .IXIC was down 6.74 points, or 0.08%, at 7,947.14.

The healthcare sector .SPXHC rose 0.4%, helped by gains in UnitedHealth Group Inc UNH.N, Pfizer Inc PFE.N and Allergan Plc AGN.N.

Shares of Allergan gained 3.7% after the drugmaker said its constipation drug, jointly developed with Ironwood Pharmaceuticals Inc IRWD.O, improved symptoms of bloating, pain and discomfort in patients suffering from irritable bowel syndrome with constipation.

Adobe Inc ADBE.O jumped 3.7% after the Photoshop software provider beat analysts' estimates for quarterly profit and revenue.

TripAdvisor Inc TRIP.O gained 1.2% after SunTrust Robinson upgraded the company's stock to "buy."

Declining issues outnumbered advancers for a 1.00-to-1 ratio on the NYSE and for a 1.01-to-1 ratio on the Nasdaq.

The S&P index recorded 12 new 52-week highs and one new low, while the Nasdaq recorded 24 new highs and 23 new lows.

(Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila)

((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ; Reuters Messaging: Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Renewable Energy Videos

BlackRock's Giordano Sees More Activity and Opportunities in Renewable Power

David Giordano, BlackRock's global head of renewable power, and Lale Topcuoglu, J O Hambro senior fund manager and head of credit, discuss the trends in the renewable power market and investing in green bonds with Bloomberg's Alix Steel

19 hours ago

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More