US stocks were a mixed bag on Wednesday as investors digested commentary from the Federal Reserve chair Jerome Powell after the central bank held interest rates steady at its latest policy meeting.
The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) fell more than 0.3%, while the Dow Jones Industrial Average (^DJI) rose 0.2%. All three indexes flipped from significant gains late in the volatile session.
Fed officials said in a policy statement Wednesday, “In recent months, there has been a lack of further progress towards the committee’s 2% inflation objective.”
But stocks took a noticeable leg higher after Powell said “it is unlikely the next policy move will be a hike.” Those gains teetered off in the final hour of trading.
Corporate earnings were in focus for investors, as well. Disappointing results from chipmaker AMD (AMD) and server maker Super Micro Computer (SMCI) took the shine off hopes for an AI-fueled boost to the sector. AMD shares sank nearly 10% while Super Micro fell 14%. The news weighed more broadly on chipmakers like Nvidia (NVDA), which closed down about 4%.
CVS (CVS) shares slid as much as 18% after the healthcare giant cut its 2024 profit forecast. Starbucks (SBUX) shares also tumbled lower by about 16% in the wake of a bad earnings miss for the coffee chain.