Breaking News

You are here » Indian-Commodity  :  International & World Stock  :  US markets closed mostly lower on Fed statement


US markets closed mostly lower on Fed statement

The US markets closed mostly lower on Wednesday, after the Federal Reserve signaled a willingness to raise benchmark interest rates in the fall. In its policy statement, the Fed stated that near-term risks to the economic outlook have been diminished, suggesting that a rate hike in September may be appropriate. According to CME Group's FedWatch tool, the market sees an 18% probability of a September rate hike, compared with a 30% probability before the statement. The Fed stated that information received since the Fed policy committee met in June indicates that the labor market strengthened and that economic activity has been expanding at a moderate rate. Job gains were strong in June, and household spending has been growing at a brisk clip. Yet the central bank also noted that business investment remained soft. At the same time, Fed officials stated that they would continue to closely monitor inflation indicators and global economic and financial developments. The committee repeated that it expects economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate. There was no reference to the specific timing of the next potential rate hike. Kansas City Fed President Esther George, who wanted a rate hike now, was the lone dissenter.

On the economy front, orders for durable or long-lasting goods made in the US sank 4% in June, marking the biggest drop in almost two years and reflecting ongoing struggles by American manufacturers to drum up sales and help boost the US economy. The only standout performer: Auto makers. Orders for new cars and trucks rose 2.6%, reversing a similar decline in the prior month. New orders fell most sharply for commercial airplanes and expensive military hardware such as ships, tanks and fighter jets. Passenger plane bookings dove nearly 60% and orders for defense capital goods dropped 21%. Stripping out the volatile transportation sector, orders fell a smaller 0.5%. Core orders are also 3.8% lower through the first half of the year compared to the same period in 2015. The increase in durable-goods orders in May, meanwhile, was revised to show a 2.8% decline instead of 2.3%.

The Dow Jones Industrial Average was down by 1.58 points or 0.01 percent to 18,472.17, S&P 500 lost 2.60 points or 0.12 percent to 2,166.58, while the Nasdaq added 29.76 points or 0.58 percent to 5,139.81. 

The Indian ADRs closed mostly in green; HDFC Bank was up 0.46%, ICICI Bank was up 0.15% and Tata Motors was up 0.10%. On the other hand, Dr. Reddy's Lab was down 0.29% and Infosys was down by 0.05%. 

Related News

View all news

US markets settle higher on Thursday

The US markets ended Thursday's choppy trading session higher as investors continued to analyze the flow of corporate earnings and a series of conflicting economic reports, but sentiment was buoyed by......

US markets end marginally lower on Wednesday

The US markets ended marginally lower on Wednesday as traders digested a mixed batch of earnings reports from big-name companies such as PepsiCo (PEP), Morgan Stanley (MS), Netflix (NFLX) and IBM Corp.......

US Markets end higher on Tuesday

The US markets ended higher on Tuesday following a round of better than expected corporate earnings. UnitedHealth reported better than expected first quarter results and raised its full-year earnings guidance.......

Top News

View all news

Lupin seeks more time from commerce ministry to complete project in Indore SEZ

Lupin has sought more time from the commerce ministry to complete its project, with proposed investment of Rs 205.69 crore, in the Indore Special Economic Zone (SEZ). The company is setting up its pharma......

Tata Sponge Iron to shift its registered office to Kolkata

Tata Sponge Iron has decided to shift its registered office from Keonjhar in Odisha to Kolkata, subject to the approval of the members of the company and other regulatory authorities. The company has also......

GVK Power's arms ink pact with ADIA, NIIF

GVK Power and Infrastructure's subsidiaries -- GVK Airports Developer (GVKADL) and GVK Airport Holdings (GVKAHL) have signed a term sheet and exclusivity agreement with Abu Dhabi Investment Authority (ADIA)......