US: Stocks mixed ahead of US Fed rate decision
US STOCKS finished mixed on Tuesday (Jan 30) ahead of the Federal Reserve’s interest rate decision, where traders and analysts will be looking for clues on when the central bank could start cutting rates.
The Fed is almost certain to keep its key lending rate on hold Wednesday for a fourth straight meeting, as it continues its fight to return inflation to its long-run goal of 2 per cent.
On Wall Street, the Dow Jones Industrial Average rose 0.4 per cent to finish the day at 38,467.31.
The broad-based S&P 500 slipped 0.1 per cent to 4,924.97, and the tech-rich Nasdaq Composite fell 0.8 per cent to 15,509.90.
Earlier in the day, fresh data showed that consumer confidence rose to its highest level in January for more than two years, while inflation expectations fell.
“I think that if inflation keeps falling and if the economic activity is still strong, this is an ideal economy for the Fed,” said Jack Ablin, chief investment officer at Cresset Capital.
“This gives the Fed a lot of elbow room,” he added.
Among individual stocks, package delivery company UPS saw its share price plunge 8.2 per cent after announcing 12,000 job cuts.
And the share price of auto giant General Motors rose 7.8 per cent after it beat profit targets and announced changes to its lineup to include plug-in hybrid electric vehicles. AFP
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