NEW YORK, United States (US): US) stocks ended mixed on Wednesday as investors digested a heavily divided Federal Reserve interest rate decision and the continuous rise of crude oil prices, reported Xinhua.
The Dow Jones Industrial Average fell 0.57 per cent to 48,861.81. The S&P 500 sank 0.04 per cent to 7,135.95. The Nasdaq Composite Index increased 0.04 per cent to 24,673.24.
Seven of the 11 primary S&P 500 sectors ended in the red. The utilities and materials sectors led the laggards, dropping 1.23 per cent and 1.1 per cent, respectively.
Meanwhile, the energy and technology sectors led the gainers, rising 2.35 per cent and 0.18 per cent.
Monetary policy took centre stage as the Federal Open Market Committee voted to keep the benchmark interest rate target unchanged on Wednesday, holding it in a range of 3.5 per cent to 3.75 per cent.
The decision was notable for its split 8-4 vote, marking the first time since 1992 that four committee members dissented.
“Both headline and core inflation have been above the two per cent target for five years and looks set to break above four per cent next month on gasoline and air fares, so it is understandable why markets and Fed officials are nervous,” wrote ING Bank on Wednesday.
Oil prices spiked. West Texas Intermediate crude for June delivery surged USD6.95 (approx. RM27.50), or 6.95 per cent, to settle at USD106.88 (approx. RM422) a barrel on the New York Mercantile Exchange.
Brent crude for June delivery jumped USD6.77 (RM26.50), or 6.08 per cent, to close at USD118.03 (approx. RM465.50) a barrel on the London ICE Futures Exchange.
On the corporate front, Wall Street’s spotlight heavily focused on the technology sector, with four members of the ‘Magnificent Seven’ – Alphabet, Amazon, Meta Platforms and Microsoft – scheduled to report quarterly results following Wednesday’s closing bell.
In other notable post-earnings movements, NXP Semiconductors and Seagate Technology Holdings soared 25.5 per cent and 11.1 per cent, respectively.
Visa and Starbucks both advanced more than eight per cent. Conversely, SoFi Technologies dropped over 15 per cent, and Robinhood Markets sank 13.24 per cent during the session. – BERNAMA-XINHUA
