US stocks retreat as markets digest Fed decision
Wall Street stocks slid early on Thursday as markets assessed the US central bank's decision to keep interest rates unchanged – while leaving the door open to a future rate increase. Around 10 minutes into trading, the Dow Jones fell 0.6 percent to 34,232. The S&P 500 lost 0.8 percent to 4,367, while the Nasdaq plunged 0.9 percent to 13,344. The Federal Reserve's decision was as analysts had expected. But the signal was that rates will likely stay higher for longer, and the market should "dial back its rate-cut expectations for 2024," said Patrick O'Hare of Briefing.com. He noted that the yields on the 10-year US Treasury note and two-year note were both up after the Fed announcement. The news over rates has overshadowed positive responses to other items, such as FedEx's earnings report and reports that the Hollywood writers' strike could end soon, O'Hare said. On Thursday, traders also eyed the latest unemployment claims data, with the low level of initial claims indicating the jobs market remains relatively tight. This means the Fed could have more reason to keep interest rates elevated to cool the economy and sustainably lower inflation. (AFP)