Wall Street Trades Lower Post-FOMC as Fed Signals Rate Outlook; Dow Drops 400 Points
Major U.S. stock benchmarks are trading mostly lower on Wednesday as investors digest the Federal Reserve’s latest monetary policy update. The Dow Jones Industrial Average (DJIA) is down 406.37 points (-0.78%) to trade at 51,686.74. Meanwhile, the S&P 500 has dropped 18.54 points (-0.24%) to 7,567.19. The Nasdaq Composite is managing a modest gain, rising 45.84 points (+0.18%) to trade at 26,027.41. Market sentiment has turned cautious during afternoon trading following signals that the Fed may implement another rate hike later this year to temper inflation.
Dow Jones Industrial Average
Dow Jones Industrial Average pushed lower today, breaking below its daily 100 EMA as market participants digest the FOMC outcome. The prospect of an additional rate hike this year has placed short-term pressure on the index. If the bearish momentum persists, price action may continue lower toward the 200 EMA for dynamic technical support. Traders will monitor this key moving average closely to see if buyers step in to stabilize the index.
RTX Corporation (RTX)
Shares of RTX Corporation (RTX) showed initial bounce reactions near the 61.8% Fibonacci retracement level today. However, this recovery could prove temporary, as selling pressure may push prices lower to test the 100 EMA. Market participants will likely observe price action around these technical support levels and wait for clear bullish confirmation before taking further action.