US stock markets showed diverging trends on Wednesday. The reason: the FED’s decision to maintain its key rate. The Dow Jones recorded a slight increase, while the S&P 500 and the Nasdaq fell. This illustrates investors' uncertainty about the future development of the American economy.
The FED keeps its key rate unchanged
At its monetary policy meeting, the FOMC decided to keep the federal funds rate within its current target range from 5.25% to 5.50%. This decision was in line with stock market expectations.
“The central bank is still concerned about inflation, but remains optimistic about its future development “, has declared Jerome Powell, President of the FED, during a press conference. He also indicated that the next rate decision would probably be a drop, but that it was too early to say for sure.
US stock market, also influenced by several economic indicators published on Wednesday
The number of job openings in the United States has unexpectedly declined. This indicates that the labor market is normalizing. On the other hand, first quarter corporate profits were better than expected. Enough to support the share price.
Among individual values, Advanced Micro Devices (AMD) fell 9.0% after issuing disappointing sales forecasts for its artificial intelligence chips. On the other hand, Johnson & Johnson (JNJ) jumped 4.6% after announcing a $6.48 billion settlement in a dispute over its talc products.
Wednesday was therefore marked by contrasting performances on the American stock markets. The FED's decision to keep its key rate unchanged had a positive impact on investor sentiment. However, economic indicators and company results remain mixed.
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