While you were sleeping ... US stocks fell overnight, with the S&P 500 snapping four-day’s of gains as the statement following the Fed’s meeting wasn’t as dovish as investors had been expecting. The Fed offered a surprisingly optimistic assessment of the US economy following its policy meeting whereas investors had been expecting them to downgrade their economic outlook in the wake of the budget wrangling in Washington earlier this month. They did note that the recovery in the housing market had lost some steam and hinted at some frustration at how slowly the labour market was healing but dropped the phrase expressing concern about a run-up in borrowing costs, suggesting greater comfort with the current level of interest rates. The fact that there weren’t any big changes to the Fed’s assessment seems to be what hit stocks with the Dow falling 0.39%, the S&P 500 losing 0.49% and the Nasdaq dropping 0.55%. The data released overnight seemed to support the Fed’s wait-and-see approach with private-sector employers hiring the fewest workers in six months in October, while CPI showed benign inflation, rising just 0.1% in September. In trading following the markets close, Facebook Inc soared 9.7% after the company reported revenue that was stronger than expected. Expedia Inc surged 18% after reporting its results.
Posted on: Wed, 30 Oct 2013 22:37:37 +0000
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