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Thursday, June 11, 2020

US stocks pare gains in choppy trade as Fed sees GDP contraction of 6.5% in 2020 ;-livemint. Updated: 11 Jun 2020, 12:48 AM IST

Jerome Powell, chairman of the US Federal Reserve, speaks during a virtual news conference seen on a laptop computer in Arlington, Virginia (Photo: Bloomberg)
The S&P 500 was down slightly in choppy trading on Wednesday after the Federal Reserve repeated its promise of support for the economy but projected a 6.5% decline in gross domestic product this year.
In its latest policy statement, the Fed also projected a 9.3% unemployment rate at year's end.
The S&P 500 and Dow both moved between gains and losses as investors absorbed the news, which included the Fed's first projections on the economy since the coronavirus outbreak. "Heading into this meeting we didn't expect any policy changes. The Fed is committed to keeping current easing measures in place and it acknowledged that risks remain," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis.
Gains were led by the technology sector, and the Nasdaq remained up about 1%.
The Dow Jones Industrial Average fell 106.15 points, or 0.39%, to 27,166.15, the S&P 500 lost 1.46 points, or 0.05%, to 3,205.72 and the Nasdaq Composite added 95.20 points, or 0.96%, to 10,048.95. The S&P 500 was off as much as 0.8% before the Fed statement. The Fed's pledge to keep monetary policy loose until the U.S. economy is back on track repeats a promise made early in the central bank's response to the coronavirus pandemic.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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