Stock indexes are closing lower on
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.
The S&P 500 was down 0.3% after having been up 0.6% following the
“The Fed’s statement today is an affirmation to market participants that a risk-on strategy will continue to be supported by the Fed," said
Powell acknowledged the economic outlook remains highly uncertain, and heavily dependent on the
“A full economic recovery is unlikely until people are confident that it is safe to re-engage in a wide variety of activities,” Powell said.
One of the primary reasons
“Don’t fear the
Technology stocks accounted for a big slice of the market's afternoon pullback, outweighing gains in financial, industrial and energy companies. Smaller stocks were climbing more than the rest of the market, and the Russell 2000 index of small-caps was up 1.3%.
FedEx rose 5.5% after reporting stronger profit growth for the latest quarter than analysts expected. The boom in online shopping caused by the coronavirus pandemic has helped its revenue climb. The company said that the growth it expected to see over the next three to five years has happened in just three to five months.
The gains were so powerful and consistent for these superstar stocks that critics warned they had become too expensive, and they tumbled sharply after carrying the S&P 500 to a record on
The economy has made some improvements since the worst of the lockdowns in the spring, but the budding recovery has been fitful. Investors say the economy and markets still crucially need all the support they can get from the
“If coronavirus disappears then we’re dealing with normal risks,” Zigmont said. “If it resurges, all the usual things that investors take into account, all the projections for the next two years go out the window.”
Federal unemployment benefits and other Congressional aid for the economy approved earlier this year have expired, but partisan disagreements on
A report on Wednesday showed that
Earlier, a separate report from the
Stock markets in
AP Business Writer