S&P 500 Index opens little changed as focus shifts to FOMC

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  • Wall Street’s main indexes are trading mixed on Wednesday.
  • Financial stocks underperform ahead of FOMC’s policy announcements.
  • Defensive sectors in the positive territory after the opening bell.

Major equity indexes in the US opened mixed on Wednesday as investors refrain from taking large positions ahead of the FOMC’s policy announcements. As of writing, the S&P 500 was unchanged on the day at 4,245, the Dow Jones Industrial Average was down 0.15% at 34,249 and the Nasdaq Composite was up 0.22% at 14,063.

Federal Reserve Preview: Forecasts from 11 major banks, eyeing any hints of tapering.

Previewing the FOMC’s June meeting, “we doubt that the upcoming Fed meeting will be a significant one. In particular, we are looking for changes in the communication on QE,” noted Danske Bank analysts. “We think the Fed will repeat that bond-buying will continue at the current pace ‘until substantial further progress has been made’ but that Fed Chair Powell will acknowledge that tapering discussions have moved closer at the press conference.”

Among the 11 major S&P 500 sectors, the Financials Index is down 0.5% on the day pressured by a modest decline witnessed in the benchmark 10-year US Treasury bond yield. On the other hand, the defensive sectors, Healthcare, Utilities and Real Estate, trade in the positive territory.

S&P 500 (SPY) (ES) Technical Overview: All hail or hold for the Fed.

S&P 500 chart (daily)

 

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