US stocks fall for second day after Fed decision

Last Updated: Fri, May 03, 2019 12:05 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 declined on Thursday, extending the losses in the previous session, after the Federal Reserve dampened hopes for any potential rate cuts soon.

The Dow Jones Industrial Average erased 122.35 points, or 0.46 per cent, to 26,307.79. The S&P 500 was down 6.21 points, or 0.21 per cent, to 2,917.52. The Nasdaq Composite Index retreated 12.87 points, or 0.16 per cent, to 8,036.77, Xinhua reported.

Eight of the 11 primary S&P 500 sectors closed lower, with energy down 1.71 per cent, leading the laggards. Health care gained 0.47 per cent, outperforming others.

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

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," adding that the recent weakness in price pressures is likely transitory and inflation will return to the target of 2 per cent over time.

The remarks pushed back traders' expectations of a possible rate cut, denting market mood, experts noted.

Wall Street also digested some corporate news and a slew of economic data.

Tesla stock jumped 4.31 per cent after the electric-car maker unveiled plans to raise about $2.3 billion by selling a mix of debt and equity.

On the economic front, in the week ending April 27, US initial jobless claims, a rough way to measure layoffs, stood at 230,000, unchanged from the previous week's unrevised level.