NEW YORK: Wall Street’s main stock indexes were little changed on Wednesday as investors awaited the conclusion of the Federal Reserve’s meeting where it is expected to keep interest rates unchanged and provide cues on its monetary policy trajectory.
US central bankers will conclude their two-day meeting later in the day. Focus will be on the Fed’s policy statement, updated economic projections and Chair Jerome Powell’s press conference.
Traders pulled back bets for a June rate cut to 64% from 71% at the start of last week, according to CME FedWatch data.
Wall Street rallied to all-time highs this month, supported by optimism around artificial intelligence, but it has retreated a little in recent weeks after reports showing robust inflation shook confidence in the Fed kicking off its rate-easing cycle soon.
“Tempered enthusiasm for rate cuts has largely been underpinned by a better-than-expected US economy and signs of sticky inflation,” said Adam Turnquist, chief technical strategist for LPL Financial.
“The most recent December SEP (Summary of Economic Projections) included Fed forecasts for three rate cuts in 2024, which could be lowered to two cuts if only two policymakers revise their forecasts down from three to two cuts this month.”
At 11:32 a.m. ET, the Dow Jones Industrial Average was up 32.88 points, or 0.08%, at 39,143.64, the S&P 500 was up 3.10 points, or 0.06%, at 5,181.61, and the Nasdaq Composite was up 5.29 points, or 0.03%, at 16,172.08.
Seven of the 11 major S&P 500 sectors advanced, though healthcare lagged and was last down 0.4%.
US-listed shares of BioNTech shed 6.0% on reporting a plunge in 2023 revenue and earnings as its focus shifts towards cancer drug development.
Fellow COVID-19 vaccine makers Moderna and Novavax eased 2.7% and 4.8%, respectively.
Tesla gained 0.9% after confirming to Reuters that it will raise the price of China-produced Model Y vehicles by 5,000 yuan ($694.55) from April 1.
The Biden administration said it is awarding Intel nearly $20 billion in grants and loans, lifting shares of the chipmaker up 0.3%.
Nasdaq’s shares fell 2.0% after the exchange operator said Borse Dubai will sell shares worth $1.6 billion in the company, reducing its stake to 10.8% from 15.5%.
Equinix eased 4.9% after Hindenburg Research said it has taken a short position in the data center operator.
PDD Holdings added 2.4% after the e-commerce company beat Wall Street estimates for fourth-quarter revenue.
Chipotle Mexican Grill climbed 5.3% after the company said its board had approved a 50-for-1 split of its common stock.
Advancing issues outnumbered decliners by a 1.64-to-1 ratio on the NYSE and by a 1.26-to-1 ratio on the Nasdaq.
The S&P index recorded 43 new 52-week highs and no new lows, while the Nasdaq recorded 49 new highs and 68 new lows.
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