Dow Tumbles 400 Points After Fed Keeps Rates Unchanged

U.S. stocks traded lower toward the end of trading, with Dow Jones dropping around 400 points on Wednesday.

The Dow traded down 1.19% to 33,803.56 while the NASDAQ fell 0.70% to 13,478.79. The S&P 500, also rose, gaining, 0.63% to 4,341.57.

Check This Out: Bitcoin Falls Below $26,000 Ahead Of Fed's Decision; XRP Becomes Top Loser

Leading and Lagging Sectors

• Information technology shares jumped by 0.6% on Wednesday. Meanwhile, top gainers in the sector included Coherent Corp. COHR, up 18%, and IPG Photonics Corporation IPGP, up 13%.
• In trading on Wednesday, energy shares fell by 1%.

Top Headline

The Federal Reserve held the fed funds rate unchanged at 5%-5.25% on Wednesday, as predicted by the market, marking the first pause in the tightening cycle that began in March 2022. However, Fed funds are expected to peak at 5.6% in 2023, up from the 5.1% forecasted in March, and then are expected to fall to 4.6%, up from the 4.3% seen in March.

Equities Trading UP

• WeTrade Group, Inc. WETG shares shot up 86% to $15.70 after the company announced it launched a large-scale language model generated by AI to increase product applications in the field of artificial intelligence.
• Shares of NextDecade Corporation NEXT got a boost, shooting 45% to $7.41 after the company announced it has entered into framework agreements with Global Infrastructure Partners and TotalEnergies to support the development of the Rio Grande LNG project.
• Blue Water Biotech, Inc. BWV shares were also up, gaining 67% to $1.3193 after the company acquired six FDA-approved drugs across various treatment areas.

Equities Trading DOWN

• Cineverse Corp. CNVS shares dropped 33% to $2.39 after the company reported pricing of $8 million public offering.
• Shares of Tenon Medical, Inc. TNON were down 55% to $0.2815 after it priced its public offering of $5.6M at $0.56 per unit.
• MicroVision, Inc. MVIS was down, falling 24% to $4.8550 on the heels of a proposed public offering.

Also Check This Out: Top 3 Materials Stocks That Are Preparing To Pump In Q2

Commodities

In commodity news, oil traded down 0.1% to $69.39 while gold traded up 0.5% at $1,967.70.

Silver traded up 1.2% to $24.095 on Wednesday while copper rose 1% to $3.8705.

Stocks of crude oil in the US climbed by 1.024 by million barrels in the week ended June 9, the API said Tuesday.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 0.36%, London’s FTSE 100 rose 0.10% while Spain’s IBEX 35 Index jumped 1.06% The German DAX gained 0.49% French CAC 40 rose 0.52% and Italy’s FTSE MIB Index rose 0.88%.

Industrial production in the Eurozone rose 1.0% month-over-month in April versus a 3.8% decline in the previous period. German wholesale prices declined by 2.6% year-over-year in May.

The UK trade deficit shrank to GBP 1.52 billion in April, recording the smallest gap since Oct, 2022. Industrial production in the UK fell 0.3% month-over-month for April. The British economy grew by 0.2% month-over-month in April versus a 0.3% decline in the prior month.

Asia Pacific Markets

Asian markets closed mixed on Wednesday, with Japan’s Nikkei 225 gaining 1.47%, Hong Kong’s Hang Seng Index dropping 0.58% and China’s Shanghai Composite Index dropping 0.14%. India’s S&P BSE Sensex rose 0.1%.

India's wholesale prices fell by 3.48% year-over-year in May following a 0.92% drop in the earlier month.

Economics

• Mortgage applications in the U.S. rose 7.2% in the week ended June 9, recording the first increase in five weeks.
• Producer prices for final demand fell 0.3% month-over-month in May versus a 0.2% increase in April, and compared to market expectations for a 0.1% decline.
• U.S. crude oil inventories climbed by 7.919 million barrels in the week ending June 9, versus market estimates of a 0.51 million decline.
• The Federal Reserve held the fed funds rate unchanged at 5%-5.25% on Wednesday.

Now Read This: AMD, Dropbox And 2 Other Stocks Insiders Are Selling

COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 107,194,310 cases with around 1,166,810 deaths. India confirmed a total of at least 44,993,080 cases and 531,890 deaths, while France reported over 40,116,540 COVID-19 cases with 167,500 deaths. In total, there were at least 690,329,200 cases of COVID-19 worldwide with more than 6,891,070 deaths.