Stock futures lower after Fed keeps interest rates near zero
29 Jul 2021
Traders work on the floor of the New York Stock Exchange.
U.S. stock futures were slightly lower in Wednesday evening trade after the Federal Reserve concluded its two-day meeting of the Federal Open Market Committee by making no move on asset purchases.
The moves in futures came after Fed Chairman Jerome Powell cautioned in a press conference that although the economy is making progress toward its goals, it has a ways to go before the central bank would actually adjust its easy policies. Treasury yields inched climbed higher in anticipation of the announcement but pulled back slightly following Powell’s comments.
“We have some ground to cover on the labor market side,” Powell said. “I think we’re some way away from having had substantial further progress toward the maximum employment goal. I would want to see some strong job numbers.”
In regular trading, the Dow Jones Industrial Average dipped 127.59 points, or nearly 0.4%, to 34,930.93. The S&P 500 ended the session little changed at 4,400.64. The Nasdaq Composite climbed 0.7% to 14,762.58.
“The market is understanding we are having a blowout quarter here compared to a year ago,” said Michael Reynolds, vice president of investment strategy at Glenmede. “What’s much more important this season is the guidance we’re getting on quarters ahead, as the economy settles out into what might be the new normal.”
The major averages are on track to end the month higher, with the S&P up 2.4% for July. The Nasdaq Composite and Dow are up 1.8% and 1.2%, respectively.