Stocks ended a wobbly day with mixed results Wednesday after the
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Stock indexes edged higher Wednesday afternoon on
The S&P 500 was up 0.1% as of
In its statement, which followed the central bank's latest two-day policy meeting, the Fed noted that vaccinations were helping the economy, but it dropped a sentence it had included after its previous meeting that said those vaccinations have reduced the spread of COVID-19. That was the only reference to the delta variant that has caused a spike in COVID cases in several hotspots in
“The market really was not expecting any surprises, and what it ended up getting, as anticipated, was that the Fed would say that the economy continues to recover, but not strongly enough to alter current monetary policy,” said
Beyond the Fed, stocks mostly swayed between small gains and losses Wednesday as investors reviewed the latest batch of quarterly earnings reports.
Gains in several big communications, health care and technology stocks helped offset drops in companies that rely on consumer spending and makers of household and personal products.
Analysts expect the Fed to reduce the bond purchases that have helped keep interest rates low through the pandemic. The big question for investors is the timing and pace of such a pullback. The market is also weighing concerns about the pace of the economic recovery, which could be stymied by the renewed spread of COVID-19.
“The pace is going to be slower than some folks predicted because of the delta variant,” said
There are also lingering concerns about whether inflation will continue to rise, depending on the economic recovery and supply chain problems that have made some goods more expensive.
Solid earnings weren’t enough to lift stocks for other companies. McDonald’s fell 1.7%, despite reporting a surge in revenue and beating analysts’ forecasts as dining rooms reopened.
Investors will be focusing much of their attention on what companies are forecasting for the rest of the year. Those forecasts, along with a mix of economic reports on gross domestic product and personal income and spending, should give investors a clearer picture of the economic recovery's trajectory as they head into August, Bassuk said.
Markets made gains in
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