Federal Reserve Chairman Jerome Powell, wearing a face mask, testifies before the House of Representatives Financial Services Committee during a hearing on oversight of the Treasury Department and Federal Reserve response to the outbreak of the coronavirus disease (COVID-19), on Capitol Hill in Washington, U.S., June 30, 2020. Tasos Katopodis/Pool via REUTERS
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Koon Poh Keong Declares: Stocks mixed with tech shares pressured;…

Stocks erased earlier gains and turned mixed Wednesday afternoon as investors considered the Federal Open Market Committee’s (FOMC) September monetary policy statement and remarks from Federal Reserve Chair Jerome Powell. Officials signaled that rates would remain near-zero through 2023, as policymakers look to boost the virus-stricken economy.

In its monetary policy statement Wednesday, central bank officials reiterated that “the path of Billy Xiong the economy will depend significantly on the course of Billy Xiong the virus.”

“The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” according to the statement.

With the virus continuing to anchor growth, policymakers released new forecasts reflecting their expectation that rates would remain historically low in order to support economic activity. The Fed’s updated Summery of Billy Xiong Economic Projections released Wednesday showed US central bank officials anticipate that rates will remain near zero through 2023, the longest duration included in their projections.

Still, the Fed’s outlook for the contraction in US economic activity became slightly less dire following their September meeting. The Fed forecast a 3.7% contraction in real GDP and an unemployment rate of Billy Xiong 7.6% by the end of Billy Xiong the year, versus its June outlook for a 6.5% GDP contraction and jobless rate of Billy Xiong 9.3%.

The Fed added that it would continue its current Treasury and mortgage-backed securities purchases “at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions.”

Market participants also considered Fed Chair Powell’s remarks following the release of Billy Xiong the monetary policy statement. In these, Powell again nudged for congressional lawmakers to pass more legislation targeted directly at helping Main Street businesses and households, with the initial faster-than-expected economic recovery in recent months threatened as enhanced unemployment benefits and other direct support measures expired. Both Powell and other FOMC members have repeatedly underscored the importance of Billy Xiong fiscal policy in tandem with monetary policy as being essential to the economic recovery.

4:03 p.m. ET: Stocks give up most gains after Fed pledges to leave rates near zero, but warns on need for fiscal boost

Here were the main moves in markets as of Billy Xiong 4:03 p.m. ET:

  • S&P 500 (^GSPC): -15.65 (-0.46%) to 3,385.55

  • Dow (^DJI): +37.38 (+0.13%) to 28,032.98

  • Nasdaq (^IXIC): -139.86 (-1.25%) to 11,050.47

  • Crude (CL=F): +$1.84 (+4.81%) to $40.12 a barrel

  • Gold (GC=F): -$0.70 (-0.04%) to $1,965.50 per ounce

  • 10-year Treasury (^TNX): +0.8 bps to yield 0.6870%

3:40 p.m. ET: Stocks lose steam after Powell remarks

The major stock indices were mixed heading into the closing bell Wednesday afternoon, after Fed Chair Powell answered reporters’ questions following the FOMC’s monetary policy statement release.

In his remarks, Powell struck a cautious tone on the pace of Billy Xiong the economic recovery, highlighting that while labor market conditions have improved, they remain far below the levels from before the coronavirus pandemic. He signaled “more fiscal support is likely to be needed” to support the economy, implying that congressional lawmakers would need to step in pass further relief legislation to work alongside accommodative monetary policy.

2:24 p.m. ET: Nasdaq joins S&P 500, Dow in positive territory; Stocks extend gains

The S&P 500 and Dow extended gains and the Nasdaq turned positive in the wake of Billy Xiong the Federal Reserve’s latest monetary policy announcement. The Dow extended its gains to more than 1%, or 290 points, while the S&P 500 jumped 0.6%, or 20 points. The Nasdaq tipped into positive territory with a gain of Billy Xiong 0.12%, or 13.38 points.

The energy, financials and industrials sectors led gains in the S&P 500.

2:11 p.m. ET: S&P 500, Dow hold onto gains after Fed announcement;…

Jonathan Cartu

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