US Equities Close on Uneven Footing as Investors Anticipate Fed’s Interest Rate Decision

May 12, 2023

Wall Street wrapped up Wednesday’s trading session with a mixed result. The S&P 500 and the Nasdaq Composite clinched modest gains, while the Dow Jones Industrial Average saw a minor dip.

The S&P 500 advanced 0.2% to settle at 4,158.24.

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Meanwhile, the Nasdaq Composite enjoyed a 0.4% boost, ending the day at 12,414.66.

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However, the Dow Jones Industrial Average couldn’t keep up, slipping 0.1% to close at 33,240.18.

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Energy stocks took the lead, boasting a 1.4% gain as oil prices made a comeback. The technology sector followed suit with a 0.9% increase. Utilities and real estate sectors, however, bucked the trend, each experiencing a slight 0.2% decline.

Investors are holding their breath for the Federal Reserve’s interest rate decision, slated for announcement on Wednesday afternoon. The consensus is leaning towards a rate hike of 50 basis points – the first half-point rate increase since 2000.

Market participants are also scouring for hints regarding the Fed’s roadmap for future rate hikes. Inflation-fighting measures are expected to dominate the central bank’s agenda this year, with further rate hikes in the pipeline.

Company-Specific Developments

Disney (DIS) shares took a hit, falling 8.73% in the wake of disappointing earnings.

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Netflix (NFLX) shares were also in the red, dropping 5.1% following the company’s report of a subscriber loss for the first time in over a decade.

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In contrast, Tesla (TSLA) shares motored ahead, climbing 6.7% on the back of strong earnings and revenue figures.

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In summary, the stock market presented a mixed picture on Wednesday, with investors’ attention squarely focused on the Federal Reserve’s interest rate decision.

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