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S&P 500 widens losses, as Fed holds rates steady

Reuters  |  NEW YORK 

By Sinead Carew

NEW YORK (Reuters) - The extended its losses slightly and the Dow turned negative on Thursday afternoon, after the said it was keeping interest rates steady in a statement following its two-day meeting.

said that ongoing strong job gains and household spending had kept the on track.

Aside from a comment that business investments had moderated from earlier in the year, investors said that the statement was largely as expected and suggested that the Fed's next rate hike would be in December.

"What the statement overall signals is that they're still on track to raise rates. December is in the plan and they don't see any reason to slow or stop the rate increases," said Brad McMillan, for Commonwealth Financial Network, an in Waltham, Mass.

"This is very much in line with what the market expected. I see the market today walking back a little from the strong gains yesterday. There's no real in the statement."

At 2:35PM ET, the <.DJI> fell 48.62 points, or 0.19 percent, to 26,131.68, the <.SPX> lost 13.12 points, or 0.47 percent, to 2,800.77 and the <.IXIC> dropped 51.31 points, or 0.68 percent, to 7,519.44.

The <.SPXBK> erased its gains and turned negative after the as profits benefit from rising rates.

Declining issues outnumbered advancing ones on the NYSE by a 1.41-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio favoured decliners.

The posted 33 new 52-week highs and 2 new lows; the recorded 70 new highs and 69 new lows.

(Additional reporting by in New York, Sruthi Shankar in Bengaluru; Editing by and Chizu Nomiyama)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 09 2018. 01:45 IST