U.S. stocks were flat on Wednesday as investors digested major technology earnings and geared up for the latest Federal Reserve policy announcement.
The Dow Jones Industrials were in the red 144.66 points to pause for lunch Wednesday at 33,840.27, dragged down by a 7% drop in Amgen’s stock.
Boeing lost more than 3% after posting its sixth straight quarterly loss, which also weighed on the Dow.
The S&P 500 dipped 0.73 points to 4,185.99.
The NASDAQ Composite fell 37.58 points to 14,052.68.
Google parent Alphabet reported better-than-expected earnings after the bell on Tuesday, sending shares of the tech giant up more than 4%. Alphabet saw its revenues grow 34% from a year ago.
Meanwhile, Microsoft shares dipped about 2.5% even after the company topped analyst estimates. Microsoft had its largest revenue growth since 2018, thanks in part to gains in PC sales resulting from coronavirus-driven shortages last year.
Shares of AMD and Visa were higher after posting better-than-expected results.
The Fed wraps up its two-day policy meeting on Wednesday. The central bank is not expected to take any action, but economists expect it to defend its policy to let inflation run hot on a temporary basis. Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET, 30 minutes after the decision is announced, and those comments could move markets.
The Fed wraps up its two-day policy meeting on Wednesday. The central bank is not expected to take any action, but economists expect it to defend its policy to let inflation run hot on a temporary basis. Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET, 30 minutes after the decision is announced, and those comments could move markets.
Technology darlings Apple and Facebook both report earnings on Wednesday after the bell.
Elsewhere, President Joe Biden is set to unveil later on Wednesday a $1.8-trillion plan in new spending and tax credits geared toward helping families.
The Biden administration’s new spending plan would hike the top income tax rate to 39.6% for the wealthiest Americans and raise taxes on capital gains to 39.6% for households making more than $1 million, according to senior administration officials. Stocks took a hit initially last week when reports of this tax hike began to surface.
Prices for 10-Year Treasurys were lower, boosting yields to 1.64% from Tuesday’s 1.63%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.52 to $64.46 U.S. a barrel.
Gold prices fell $3.90 to $1,774.90 U.S. an ounce.