2 months ago
Stock Market

Stocks - Wall Street Slips as Fed Hangover Continues

Investing.com - Stocks in New York opened lower following a late-day selloff in the previous session triggered by the Fed’s

Investing.com - Stocks in New York opened lower following a late-day selloff in the previous session triggered by the Fed’s interest rate decision.

The S&P 500 fell 0.3%, while the Dow Jones lost 0.4% and the tech-heavy Nasdaq Composite was flat.

Trading may be subdued after the large swings this week and as the holiday week approaches.

The market ended sharply in the red yesterday, wiping out strong earlier gains, with traders disappointed that the FOMC and Fed chief Jerome Powell didn’t give more assurances about accommodative monetary policy next year.

"Investors were expecting a more dovish tone from Powell given the sharp fall in equity markets and challenging global macroeconomic conditions. All they got was a less hawkish tone," said Hussein Sayed, chief market strategist at FXTM.

The Dow closed at its lowest since November last year and the Dow Jones Transports closed nearly 21% below its record high, confirming bear territory.

The S&P 500 was 14.5% lower from its record closing high on Sept. 20, with 298 components now down 20% or more from their 52-week highs.

Among active stocks, Down component Walgreens Boots Alliance (NASDAQ:WBA) fell 3% on sales that were a tad lower than expectations.

Tilray (NASDAQ:TLRY) jumped 6% on news the cannabis company is teaming up with Anheuser Busch Inbev (NYSE:BUD) to research cannabis-infused non-alcoholic beverages.

And Newell Brands (NASDAQ:NWL) stock gained 2% after activist investor Carl Icahn revealed in a regulatory filing that he now owns 9.89% of the company, up from 8.1%.

In tech, Facebook (NASDAQ:FB) fell 1%, while Apple (NASDAQ:AAPL) rose 0.3%.

And on the economic front, the Philly Fed’s manufacturing index posted an unexpected decline from December.

-- Reuters contributed to this report.