Stocks stall | Fed stays the course | Biden to unveil $1.8 trillion stimulus

WED, APR 28, 2021

EVENING BRIEF

AS OF WED, APR 28, 2021 • 04:26 ET

DJIA		33820.38
		-0.48%	-164.55

S&P 500		4183.18
		-0.08%	-3.54

NASDAQ		14051.03
		-0.28%	-39.19

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	133.58	-0.81	-0.60%
MSFT	254.56	-7.41	-2.83%
INTC	57.62	-0.35	-0.60%

S&P 500
NAME	LAST	CHG	%CHG
AMD	84.02	-1.19	-1.40%
AAPL	133.58	-0.81	-0.60%
GE	13.20	-0.29	-2.15%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	84.02	-1.19	-1.40%
AAPL	133.58	-0.81	-0.60%
MSFT	254.56	-7.41	-2.83%

EDITOR'S NOTE

The S&P 500 closed around the flat line on Wednesday despite the Federal Reserve's decision to hold interest rates near zero and pledge to keep its easy monetary policy in place for some time. The central bank also acknowledged that the economy is getting stronger in its recovery from the Covid pandemic and inflation is rising.

The S&P 500 touched an intraday high during Fed Chair Jerome Powell's news conference when he said it would likely take "some time" before the central bank's objectives are achieved. Powell also said it is not time yet to begin talking about tapering the Fed's monthly asset purchases.

The Dow Jones Industrial Average dropped more than 160 points, however, dragged down by losses from Boeing, Microsoft and Amgen. The Nasdaq Composite shed about 0.3%.

"Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened," the Fed said in a statement, in which it also decided to leave interest rates near zero. The central bank also added that it is seeing signs of rising inflation, but the price increases are pandemic-related and should be transitory.

"Markets are buying into the fact rates are going to stay low," said Michael Arone, chief investment strategist at State Street Global Advisors. Powell is "focused on inflation, which is transitory, and the labor market, which has a tremendous amount of slack and a long way to go. This idea that rates won't accelerate quickly, I do think helps soften some of the concerns that accelerating interest rates were going to be a headwind for growth stocks. I guess that's good news for asset prices."

Investors also digested major technology earnings from Google-parent Alphabet, AMD and Microsoft. However, all eyes are on Apple and Facebook, which report after the closing bell Wednesday. Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC that the stock market may wait until some of these key reports are out before deciding on its next major direction.