Stock market today: Live updates
A trader works, as a screen displays a news conference by Federal Reserve Board Chairman Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, July 26, 2023.
S&P 500 futures rose in overnight trading after the Federal Reserve instituted a quarter percentage point hike, bringing rates to the highest level in more than 22 years.
Futures linked to the S&P 500 were 0.48% higher while Dow Jones Industrial Average futures added 55 points, or 0.15%. Futures connected to the Nasdaq-100 rose 1%.
Meta Platforms shares popped nearly 7% in extended trading on better-than-expected results and strong guidance, while Chipotle Mexican Grill plunged about 9% as sales fell short of estimates.
In regular trading Wednesday, the Dow Jones Industrial Average rose for a 13th straight session, gaining 82.05 points, or 0.23%, to notch its longest win streak since 1987. The S&P 500 dipped 0.02%, while the Nasdaq Composite lost 0.12%.
The moves came after the Fed implemented a widely-expected 25 basis point hike, bringing interest rates to their highest level since 2001.
Remarks from Chair Jerome Powell hinted the central bank could also hold rates steady at these levels, and suggested that the Federal Open Market Committee will remain data-dependent. The central bank meets again in September after a batch of new inflation and employment data.
"I would say it's certainly possible that we will raise funds again at the September meeting if the data warranted," he said during a press conference following the hike. "And I would also say it's possible that we would choose to hold steady and we're going to be making careful assessments, as I said, meeting by meeting."
BMO Wealth Management's Yung-Yu Ma called the message from the central bank "balanced," although its "finger remains on the trigger" as Powell noted that the system has yet to experience the full impacts of tightening.
"Nonetheless, the coming meetings are 'live' as inflation is still well above the Fed's longer-range goal of 2%," the chief investment officer said. "If there was any doubt, Chairman Powell reiterated the Fed's commitment to 2% inflation and restoring price stability."
Wall Street is looking ahead to another packed earnings day Thursday, with results from Honeywell , McDonald's , Intel , Ford Motor , T-Mobile and Royal Caribbean . Investors will also be watching the Dow: If it ends the day with a 14th straight positive session, it will mark the longest winning streak for the 30-stock average since June 1897.
Fresh economic data points include initial jobless claims, June durable goods orders, a preliminary second-quarter GDP reading and pending home sales.
Source: CNBC
