- Confusion about FOMC’s next policy move weighed on stocks markets.
- Technology shares are leading the gains on Thursday.
- Falling crude oil prices weigh on the energy sector.
Major equity indexes in the United States are attempting to stage a recovery following yesterday’s sharp selloff and are posting modest gains at the opening bell on Thursday. As of writing, the Dow Jones Industrial Average was up 0.13% on the day while the S&P 500 and the Nasdaq Composite were rising 0.2% and 0.7% respectively.
Following the Federal Reserve’s decision to cut the policy rate by 25 basis points as expected, Chairman Powell confused markets about what the next policy move is likely to be and forced main Wall Street indexes to suffer losses. Nevertheless, investors seem to be shifting their focus back to second-quarter earnings and paving the way for a rebound.
The sharp increase witnessed in technology shares today leads the market action. The Technology and the Communication Services indexes are up 0.9% and 0.65% in the early trade. On the other hand, falling crude oil prices seem to be weighing on the energy shares and limiting the upside for the time being. The Energy index was last down 1.4% on the day.
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