Stock Market Today: Dow slips as Fed hikes again, moves to data

-- The agea foreign exchangeDow gave up gains to close lower Wednesday after the Federal Reserve lifted interest rates, and signaled a possible pause in June, though said incoming economic data would ultimately sway its decision.

The fell 0.8%, or 270 points, the slipped 0.5%, and the   was down 0.7%.

The Federal Reserve raised interest rates by 0.25% on Wednesday, and tweaked the language in its policy statement to signal that a June pause was in play but said future decisions will be determined by incoming data.

The tweak in policy language marked a "meaningful change," Fed Chairman Jerome Powell said Wednesday, [as] "we were no longer saying that we anticipate [some additional policy firming]."

"[I]n our view this new language suggests the Committee’s base case is to pause in June—in line with our forecast, consensus, and market pricing—and the onus is on data to surprise to the upside for rates to rise further," RBC said in a note. 

Bank stocks pushed the broader market lower amid worries the higher for longer rate regime will continue to hurt regional banks.

Zions Bancorporation (NASDAQ:), (NYSE:), and Invesco Dynamic Market (NYSE:) were among the biggest decliners.

The slide in Treasury yields slipped following the Fed decision, failed to boost rate sensitive areas of the market as tech slid.

Alphabet (NASDAQ:) gave up the bulk of its gained to close just above the flatline, while META and Apple (NASDAQ:) slipped just a day ahead of the latter’s results.

Apple is expected to report quarterly results after closing bell on Thursday, with investor focus likely to be on signs of iPhone demand just as global growth jitters persist.

“We believe iPhone units based on a clear uptick in demand around the key China region this quarter could show some upside despite the shaky macro as higher average selling prices and overall upgrade activity on iPhone Pro 14 carry the day for Cook & Co,” Wedbush said in a recent note.

Meta Platforms Inc (NASDAQ:), meanwhile, was pressured by regulator concerns after the Federal Trade Commission proposed a ban on Facebook from monetizing the data of children and teens under 18 alleging that social media company violated a previous privacy order.

Chip stocks were also a big drag on the broader tech sector, paced by a 9% decline in Advanced Micro Devices Inc (NASDAQ:) after the chipmaker’s somewhat underwhelming guidance and concerns about its margins overshadowed better-than-expected

“The optics around [AMD’s] data center are not great and estimates are going to have to come down again,” UBS said, adding that gross margin is “probably the biggest concern in our eyes as it is being guided flat”

Eli Lilly and Company (NYSE:) bucked the trend lower after reporting positive results from its Alzheimer’s drug that paves the way to file for FDA approval by the end of June.

Kraft Heinz Co (NASDAQ:) was also ended higher, up 2%, after the consumer staples company lifted its annual guidance following better-than-expected as price hikes boosted performance.

Starbucks Corporation (NASDAQ:) plunged 9% even as the coffee chain reported quarterly results that as growth in China returned following the country’s reopening from its Covid lockdown.  

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!