Economy News for Wednesday

Economy News for Wednesday

U.S. benchmark equity indexes closed lower on Wednesday as the Federal Reserve maintained its benchmark lending rate and highlighted that inflation remains "somewhat elevated."

Federal Reserve Update

• The Federal Open Market Committee (FOMC) kept interest rates within the 4.25% to 4.50% range, aligning with Wall Street expectations after three consecutive rate cuts.
• The FOMC dropped its December reference to progress toward the 2% inflation target, signaling a cautious stance.
• Labor Market: The Fed noted that the unemployment rate has stabilized at low levels and labor market conditions remain strong.
• Fed Chair Jerome Powell stated that policymakers are not in a rush to adjust the current policy stance.

Key Rates:

• The 10-year U.S. Treasury yield fell by 1.5 basis points to 4.53%.
• The 2-year yield rose 1.7 basis points to 4.22%.

Market Performance and Company News

• Nvidia: Shares of the chipmaker dropped 4.1%, marking the steepest decline on both the Dow and Nasdaq. The fall came after reports from Bloomberg suggested that the Trump administration is considering additional restrictions on Nvidia chip sales to China.

Commodities Update

• Crude Oil: West Texas Intermediate crude fell 1.1% to $72.95 per barrel, as government data showed U.S. commercial crude stockpiles increased more than expected last week.
• Gold and Silver: Gold edged up 0.1% to $2,771.30 per troy ounce, while silver surged 2.2% to $31.57 per ounce.

Economic News

• Mortgage Applications: Mortgage activity in the U.S. declined last week, largely due to weaker refinancing activity across conventional and government loans, according to the Mortgage Bankers Association.

The day highlighted continued caution in monetary policy, volatile commodity markets, and sector-specific challenges, particularly in technology and energy.