The decline in the stock markets after the Fed has not been sustainable, the central bank noting a division on the political strategy



Shares rose slightly on Wednesday afternoon, after a brief dip following the release of the Federal Reserve's January meeting report, which showed that the policy-making committee was divided on the trajectory of inflation rates. 'interest.

What are stock market indices doing?

The Dow Jones Industrial Average

DJIA, + 0.29%

earned 56 points, or 0.2%, at 25,944 and the S & P 500 Index

SPX, + 0.23%

increased by 4 points, or 0.1%, to 2,783. The Nasdaq Composite Index

COMP + 0.06%

however, it decreased by 6 points, or 0.1%, to 7,481.

What is the engine of the market?

The transcript of the January Federal Open Market Committee meeting indicated that officials were divided between those who thought rate increases might be needed only if inflation accelerated beyond their baseline forecasts and those who felt that a stricter policy was needed if the economy changed as expected. However, almost all participants in the conference wanted to stop reducing their balance sheet later this year.

Trade remains in the spotlight despite some concrete developments. The shares found support Tuesday after President Donald Trump declared that there was nothing "magical" in the March 1 deadline for the US-China talks, which was considered as a sign that tariffs on imports of Chinese products may not be automatically raised to 25%. 10% on this date if an official agreement has not been finalized.

US and Chinese negotiators are expected to continue negotiations in Washington after talks last week in Beijing.

What do analysts say?

Market expectations for more accommodative signals from the Federal Reserve are high, Marc Pfeffer, Chief Investment Strategist and Portfolio Manager at CLS Investments, told MarketWatch. "The market is waiting for the Fed to return to its vision of the economy, while remaining positive on the economy," he said.

The Fed's report is "the most important event of the week as it will give us an indispensable insight into the Federal Reserve's thinking on its radical change," said Kristina Hooper, Invesco's chief global markets strategist .

What stocks are under discussion?

Actions of CVS Health Corp.

CVS, -8.30%

fell 8.1% after the health care retailer announced fourth-quarter profits and fourth-quarter earnings below Wall Street's expectations.

Cadence design systems

CDS + 5.04%

Equities rose 4.8% after the company posted fourth-quarter earnings above consensus expectations, while raising its outlook for the first quarter.

Tesla Inc.

TSLA, -1.39%

Shares fell 1.2% after the company announced that its general counsel, Dane Butsinkas, would leave the firm after just two months in the job.

Lily: Elon Musk: Bitcoin is great, but it's not for Tesla

Actions of Southwest Airlines Co.

LUV -5.02%

fell 4.8% after the company said the government shutdown had reduced revenues more than expected, reducing its outlook for the first quarter.

LendingClub Corp.

LC, -7.76%

stocks fell 6.7% after the peer-to-peer loan company announced its fourth quarter results, below analysts' forecasts.

Actions of Garmin Ltd.

GRMN, + 17.16%

rose 17% after the company posted fourth quarter earnings and fourth quarter revenue higher than expected, while increasing its dividend.

How are other markets traded?

Asian equities rose, with Japan's Nikkei 225

NIK + 0.60%

Hong Kong Hang Seng Index

HSI, + 1.01%

and the Shanghai Composite Index in China

SHCOMP, + 0.20%

all closing higher.

In Europe, equities also rose, with the Stoxx Europe 600

SXXP, + 0.67%

up 0.7%.

The price of crude oil

CLH9, + 1.44%

increased by more than 1%. Gold price

GCH9, -0.07%

set slightly higher and the US dollar

DXY, -0.05%

back against his peers.

-William Watts contributed to this article

Provide essential information for the US trading day. Subscribe to the free MarketWatch Need to Know newsletter. Register here.


Source link