BUSINESS US stock struggle for direction ahead of Fed meeting

BUSINESS

US stock struggle for direction ahead of Fed meeting

Xinhua

22:49, June 14, 2021

NEW YORK, June 14 (Xinhua) -- US stocks struggled for direction on Monday morning as investors awaited a key policy meeting from the Federal Reserve.

File photo

Shortly after the opening bell, the Dow Jones Industrial Average decreased 109.76 points, or 0.32 percent, to 34,369.84. The S&P 500 lost 5.60 points, or 0.13 percent, to 4,241.84. The Nasdaq Composite Index rose 30.65 points, or 0.22 percent, to 14,100.07.

Seven of the 11 primary S&P 500 sectors declined in morning trading, with materials down 0.88 percent, leading the laggards. Energy climbed 0.7 percent, the best-performing group.

Investors will pay close attention to the Fed's two-day policy meeting slated from Tuesday to Wednesday. Fed Chairman Jerome Powell will speak to the press after the central bank issues its statement on Wednesday afternoon.

"This week's Fed meeting is highly unlikely to include any policy changes," Chris Low, chief economist at FHN Financial, said in a note on Monday.

"There will be an updated dot plot and a new economic forecast, however," he said, adding "we also expect Chair Powell will indicate there will be a taper discussion in July, though he will also remind us the Fed will provide ample warning between any decision on tapering and its execution."

For the week ending Friday, US equities posted mixed results with the Dow dipping 0.8 percent, while the S&P 500 and the Nasdaq up 0.4 percent and 1.9 percent, respectively.

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