Dow Falls as Hours Wind Down to Fed Decision - InvestingChannel

Dow Falls as Hours Wind Down to Fed Decision

The Dow Jones Industrial Average fell Wednesday as investors looked ahead to the Federal Reserve’s policy decision and subsequent press conference slated for the afternoon.

The 30-stock index remained in the red 83.91 points to pause for lunch Wednesday at 34,128.21. UnitedHealth was the biggest drag on the Dow, losing 7%.

The S&P 500 pushed higher 17.26 points to 4,386.27.

The NASDAQ index gained 64.89 points to 13,637.39.

Aside from the Fed’s policy announcement, investors are preparing for Chair Jerome Powell’s remarks to the media, where he may give insight into the state of the economy and the central bank’s path forward.

Investors received more encouraging inflation data on Wednesday. May’s producer price index, an indicator of the path of inflation, fell 0.3%, a larger decrease than expected. Economists polled by Dow Jones anticipated a decline of 0.1%. On Tuesday, May’s reading of the consumer price index, which showed the lowest annual increase in more than two years, bolstered investor hopes that the Fed will not raise interest rates.

Prices for the 10-year Treasury gained ground, dropping yields to 3.78% from Tuesday’s 3.83%. Treasury prices and yields move in opposite directions.

Oil prices dropped 26 cents to $69.16 U.S. a barrel.

Gold prices regained $12.10 to $1,970.70 U.S. an ounce.

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