S&P 500 widens losses, as Fed holds rates steady

The S&P 500 extended its losses slightly and also the Dow turned negative on Thursday afternoon, following your US Fed said it was keeping interest rates steady inside a statement following its two-day meeting.

The US central bank stated that ongoing strong job gains and household spending had kept the economy on course.

Aside from a comment that business investments had moderated from earlier during, investors declared that the statement was largely of course and suggested that the Fed’s next rate hike will be in December.

“What are the statement overall signals is the fact they’re still to normal to lift rates. December is within the plan and they don’t go to whichever reason to slow or stay away from the rate increases,” said Brad McMillan, Chief Investment Officer for Commonwealth Financial Network, an impartial broker-dealer in Waltham, Mass.

“This is extremely much in keeping with exactly what the market expected. I see the market today walking back just a little from your strong gains yesterday. There’s no real news in the statement.”

At 2:35PM ET, the Dow Jones Industrial Average fell 48.62 points, or 0.19%, to 26 131.68, the S&P 500 lost 13.12 points, or 0.47%, to 2 800.77 additionally, the Nasdaq Composite dropped 51.31 points, or 0.68%, to 7 519.44.

The S&P bank index erased its gains and turned negative after the news as bank profits reap the benefits of rising rates.

Declining issues outnumbered advancing ones to the NYSE with a 1.41-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio favored decliners.

The S&P 500 posted 33 new 52-week highs as well as new lows; the Nasdaq Composite recorded 70 new highs and 69 new lows.