US stocks fall as Fed keeps rates unchanged

Last Updated: Thu, May 02, 2019 11:10 hrs
The Dow Jones Industrial Average is seen setting a record high close for a trading year as the final day of trading for the year draws to a close at the New York Stock Exchange (NYSE) in Manhattan, New York

New York: US stocks finished lower as Wall Street digested the Federal Reserve's latest statement on monetary policy.

The Dow Jones Industrial Average on Wednesday decreased 162.77 points, or 0.61 per cent, to 26,430.14. The S&P 500 was down 22.10 points, or 0.75 per cent, to 2,923.73, Xinhua news agency reported.

The Nasdaq Composite Index dropped 45.75 points, or 0.57 per cent, to 8,049.64.

The US Federal Reserve on Wednesday left interest rates unchanged after concluding a two-day policy meeting.



The Fed also dashed hopes for an early rate cut.

Fed Chairman Jerome Powell said at a news conference that the central bank's policy stance "is appropriate" at the moment and "we don't see a strong case for moving in either direction".

All the three major indexes erased early gains and turned negative after Powell's remarks.

Ten of the 11 primary S&P 500 sectors ended lower, with energy and materials down 2.17 per cent and 1.84 per cent, respectively, leading the laggards.

The market movement came after the release of strong jobs data, which helped lift market mood in early session.

US private sector employment increased by 275,000 jobs from March to April, payroll data company Automatic Data Processing reported on Wednesday. The reading beat economists' consensus surveyed by Econoday for 180,000 jobs added.