Market Overview

U.S. Equities Plunge Following FOMC Statement

Share:
U.S. Equities Plunge Following FOMC Statement

U.S. equities were trading in positive territory ahead of the release of the Federal Reserve's minutes from its December meeting.

Heading into the final 30 minutes of trading, the SPDR S&P 500 ETF Trust (NYSE: SPY) was lower by 1.22 percent while the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: QQQ) was lower by more than 2.5 percent.

The Federal Reserve stated that labor market conditions "improved further even as economic growth slowed" at the end of 2015. Meanwhile, household spending and fixed investments have "been increasing at moderate rates" in recent months while the housing sector has "improved further." However, next exports have been "soft" and inventory investment "slowed."

See Also: Gold Futures Shine As Market Melts Down

The Federal Reserve added it sees additional decline in under-utilization of labor resources.

Inflation continues to "run below" the 2 percent target and reflects declines in energy prices and prices of non-energy imports. The Federal Reserve would be concerned if the inflation runs persistently above or below its target.

With that said, the Committee maintained the target range of its federal funds at 0.25 to 0.50 percent. The Committee also reaffirmed its "accommodative" stance but also affirmed that a "gradual" adjustment to monetary policy will happen at a "moderate" pace.

Posted-In: employment ETFNews Futures Federal Reserve Intraday Update Markets Movers Best of Benzinga

 

Related Articles (SPY + QQQ)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com