Economy

Closing Bell: Stocks Higher Despite President Trump's North Korea Aggression

Closing Bell: Stocks Higher Despite President Trump's North Korea Aggression”

The major U.S. stock indexes closed mixed on Wednesday after the U.S. Federal Reserve indicated another rate hike was still possible before the end of the year and that it would begin the reducing of its balance sheet next month.

Fed officials continue to expect that the US economy will expand at a moderate pace in the future.

USA stocks ended higher on Wednesday, as the Federal Reserve announced start of balance sheet reduction from October.

While some investors said the Fed's tone was more hawkish than expected others were happy Fed Chair Janet Yellen reiterated her stance that balance sheet reduction would be data dependent. Household spending and business investment growth have both increased.

After the statement traders were betting on a roughly 67 percent chance of a December hike, compared with 51 percent minutes before, according to the CME Group's FedWatch tool.

In Asian news, the Bank of Japan held steady as expected after the conclusion of its two-day meeting on Thursday, with no change to rates or the asset buying program focused on the yield curve at ¥80 trillion annually. What wasn't known was the tone.

Analysts said market will also be looking for clues of whether the Fed will raise rates in December.

The Dow Jones Industrial Average fell 0.24 per cent to 22,359.23, the S&P 500 lost 0.30 per cent to 2,500.6 and the Nasdaq Composite dropped 0.52 per cent to 6,422.69.

The blue-chip slipped 6 points, or 0.03% by 7:07AM ET (11:0GMT), the dropped 1 point, or 0.05%, while the tech-heavy edged forward 3 points, or 0.05%.

U.S. stock indexes have slipped as investors brace for a third official interest rate rise this year and the United States ordered new sanctions against North Korea. The Shanghai Composite slid 0.08% and the Shenzhen Composite inched lower by 0.04%.

In late NY trading on Wednesday, the euro fell to $1.1895 dollars from 1.1998 dollars in the previous session, and the British pound lost to $1.3485 from $1.3523 in the previous session, Xinhua news agency reported.

Roughly 6.7 billion shares changed hands on USA exchanges compared with the 6 billion average for the last 20 sessions.

Advancing issues outnumbered declining ones on the NYSE by a 1.26-to-1 ratio; on Nasdaq, a 1.30-to-1 ratio favored advancers.



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