U.S. stocks closed mostly lower Thursday as the Federal Reserve kept interest rates unchanged in an unanimous decision and signaled that it would continue to tighten monetary policy at a gradual pace.
In a statement that was largely intact from its September meeting, the Fed said, "The Committee expects further gradual increases in the target range for the federal funds rate." It also said the risks to the economic outlook "appear roughly balanced" and noted that inflation remains near its 2% target.
The absence of any major changes to its commentary suggests that the central bank plans to raise interest rates in December and plans three hikes next year, in line with market expectations.
Thursday's weak tone follows strong gains for stocks with midterm election results removing a measure of uncertainty that had weighed on investors' sentiment.
It suggests that the market is a little less worried about a recession and more confident of growth.
The Dow Jones Industrial Average DJIA, +0.04% gained 10.92 points to 26,191.22,
The S&P 500 index SPX, -0.25% shed 7.06 points, or 0.3%, to 2,806.83 and
The Nasdaq Composite COMP, -0.53% fell 39.87 points, or 0.5%, to 7,530.88.
On Wednesday, all three indexes had ended the session just shy of their intraday highs and booked their best daily gains in weeks.
Stocks in focus
Shares of Tesla Inc. TSLA, +0.93% rose 0.9% after the electric-car maker named Robyn Denholm as its new chairman, replacing Chief Executive Elon Musk as the head of the board with a relative outsider who will face the difficult task of overseeing the maverick billionaire.
Wynn Resorts Ltd. WYNN, -13.13% stock sank 13% after an earnings call late Wednesday during which CEO Matthew Maddox said he anticipates a “soft” market in the fourth quarter for its Macau business line.
Shares of Qualcomm Inc. QCOM, -8.16% dropped 8.2% following the announcement Wednesday evening that the company lost money in the third quarter.
Original source: Marketwatch