Damian J. Troise, Associated Press Published 11:27 a.m. ET June 16, 2021 | Updated 11:28 a.m. ET June 16, 2021
Stocks were moving between small gains and losses Wednesday as investors wait to hear from the Federal Reserve on issues related to the economy and inflation.
The S&P 500 index was down 0.1% as of 11:08 a.m. Eastern. The Dow Jones Industrial Average was down 28 points, or 0.1%, to 34,271 and the Nasdaq Composite was up 0.1%.
Banks and industrial stocks weighed down the broader market, offsetting gains made by health care and technology companies. The S&P 500 is sitting just below a record high set on Monday. Trading remains choppy as investors gauge how to position themselves amid the economic recovery and rising inflation.
We’re offering a great deal on all-access subscriptions. Check it out here.
“There’s not a lot of volatility right now, but we’ve had shallow ups and downs,” said Veronica Willis, investment strategy analyst at Wells Fargo Investment Institute. “It’s good to focus on the underlying state of the economy and how that could drive equities going forward.”
The Federal Reserve will end a two-day policy meeting later in the day. While investors do not expect the nation’s central bank to increase interest rates from their near-zero levels, most are looking for some sort of guidance from the Fed on inflation.
Prices for many basic materials have risen sharply this year, including copper, oil and lumber, as demand for those materials increases as the U.S. economy recovers from the pandemic. Fed officials have previously said they expect inflation this year to be temporary and largely as a byproduct of economic growth and trillions of dollars of economic stimulus.
Most economists expect the Fed to say again on Wednesday that it sees higher inflation being only temporary, which would allow it to hold steady on its support for markets. But they also say Wednesday afternoon could offer the first sign that the Fed is mulling when to start slowing its purchases of bonds.
The yield on the benchmark 10-year Treasury note fell slightly to 1.49% from 1.50% the day before.
In individual stocks, shares of Oracle fell 5.6% after the company’s full-year projections came in below analysts’ forecasts. Furniture company La-Z-Boy fell 9.1% after warning investors that supply chain problems and higher materials prices could hurt profit margins.
General Motors rose 2.1% after saying it will raise spending on electric and autonomous vehicles and add two U.S. battery factories.
Read or Share this story: https://www.detroitnews.com/story/business/2021/06/16/stocks-bond-yields-holding-pattern-ahead-fed-decision-tdn/7713125002/