US Stocks Dip As Fed Stays Dovish

Wall Street stocks declined on Wednesday as the Federal Reserve signalled a continuation of accommodative monetary policies, while leading Dow members tumbled after earnings reports.

Fed Chair Jerome Powell highlighted he expects benchmark lending rates to remain near zero, while the central bank plans a continuation of its massive bond buying programme until employment recovers.

Powell also took a dovish stance on inflation, saying he still expects price increases to be temporary and not the sort of longstanding problem that will necessitate an abrupt change in policy.

Analysts said the remarks were largely in line with expectation. Stocks have been choppy in recent days as investors debate how much upside remains following a string of records earlier in 2021.

The Dow Jones finished down 0.5 percent at 33,820.

The S&P 500 shed 0.1 percent to 4,183, while the Nasdaq lost 0.3 percent at 14,051.

Amgen was the biggest loser in the Dow, tumbling 7.2 percent after reporting lower-than-expected profits on disappointing sales for key medicines.

Fellow Dow member Boeing dropped 2.9 percent as it reported its sixth straight quarterly loss following a series of production problems that dented revenues. The aviation giant said it does not expect a full recovery to pre-coronavirus demand until 2023 or 2024.

But Google parent Alphabet jumped 3.2 percent after reporting that quarterly profit more than doubled as digital advertising surged with more people relying on the internet during the coronavirus pandemic. (AFP)